KUALA
LUMPUR (Dec 16): CIMB Research has maintained its “Hold” rating on KLCC
Property Holdings Bhd at RM6.50 with an unchanged target price of
RM6.90 and said that in the current market conditions, REITs could
provide a safe haven for capital preservation given its stable dividend
yields.
In a note Tuesday, the research house said during its recent tour of some of KLCCP's assets, it was pleasantly surprised that Menara ExxonMobil still looked relatively new despite being almost 18 years old.
“This gives us confidence that it will not face issues extending its tenancy when it expires in 2017. We were also impressed by Menara 3, which was more recently built (in 2011) and houses Petronas's offices and other O&G companies.
“While the offices were impressive, we understand that KLCCP's acquisition pipeline remain scarce in the next 1-2 years.
“We maintain our Hold call and DDM-based target price of RM6.90. For exposure to M-REITs, we prefer Axis REIT,” it said.
In a note Tuesday, the research house said during its recent tour of some of KLCCP's assets, it was pleasantly surprised that Menara ExxonMobil still looked relatively new despite being almost 18 years old.
“This gives us confidence that it will not face issues extending its tenancy when it expires in 2017. We were also impressed by Menara 3, which was more recently built (in 2011) and houses Petronas's offices and other O&G companies.
“While the offices were impressive, we understand that KLCCP's acquisition pipeline remain scarce in the next 1-2 years.
“We maintain our Hold call and DDM-based target price of RM6.90. For exposure to M-REITs, we prefer Axis REIT,” it said.
