Singapore Stock Market News

Perennial China Retail Trust - Limited downside

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Publish date: Thu, 09 Oct 2014, 11:18 AM
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Two key pieces of information in the PREHL circular warrant a relook at PCRT
1) the value within PREHL, and

2) the plan for strata sales of up to 50% of PREHL's China assets, which will reduce funding risks.

We upgrade PCRT from reduce to Hold, with a slightly higher target price (still at 30% discount to RNAV) as we adjust our rental estimates.

We cut FY15-16 DPS by 11-15% for the delayed opening of Chengdu Dongzhan Mall and potentially higher pre-opening expenses.
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