Singapore Stock Market News

Religare Health Trust - Fairly valued

StockFanatic
Publish date: Thu, 14 Aug 2014, 07:04 PM
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1QFY15 DPU was in line, at 23-24% of our and consensus FY15 forecasts. As expected, weaker rupee and expiry of sponsor waiver for distributions affected DPU, which fell 10% qoq. The portfolio assets remain strong operationally, with the ARPOB for mature assets rising 10-20% yoy. Moving forward, we expect healthy growth from ramping up of newer assets, completion of development assets in 2016 and the rupee's recent strengthening. RHT has performed well, having rallied ~20% since the peak of the rupee concerns.

Downgrade our call from Add to Hold, with a slightly higher DDM-based TP (disc. rate 11.7%) and DPU as we adjust our forex estimates.
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