Sunway Real Estate Investment Trust (SunREIT) would be worth 97 sen based on 1.0 times price to net asset value (P/NAV), says OSK Research.
It said SunREIT, which is listing on Thursday, July 8, will be the largest Malaysian REIT (M-REIT), with assets worth RM3.7 billion and a free float of about RM1.6 billion.
With its exposure to the retail, hospitality and office sub-sectors, Sunway REIT is a defensive REIT that will offer unitholders a longer term growth catalyst.
Given its lower dividend yield of 6.9% (vs the sector’s 8.5%) and the fact that it will be trading at 1.0 times P/NAV, Sunway REIT may appeal to only certain classes of investors, especially those with a defensive investment strategy.
“Based on 1.0 times P/NAV, Sunway REIT would be worth 97 sen,” it said.
Written by OSK Research
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