• Boosting recurrent income base through the purchase of Ropemaker Place in UK.
• Low Singapore inventory; well positioned to tap new landbank opportunities.
• Extended Australian development pipeline with Wollert acquisition; China on track.
• Maintain ADD with a higher Target Price of S$3.00.

Model Update; Raise Target Price to S$3.00

We update HoBee’s model to incorporate its latest acquisitions in the UK and Europe as well as adjust for China development profit recognition and S$28.3m fair value surplus from the revaluation of its 999-year leasehold petrol station site in Singapore, announced during 2Q18 results. Accordingly, our RNAV rises to S$4.99.

Our new Target Price of S$3.00 is pegged to a 40% discount to RNAV.

Source: CGS-CIMB Research - 23 Aug 2018