Wednesday, June 9, 2010

Axis REIT an outperform, says Inter-Pacific Research

KUALA LUMPUR: Inter-Pacific Research is recommending Axis Real Estate Investment Trust (Axis REIT) an outperform at RM2 with target price RM2.30 on a 5% discount using discounted cash flow.

The research house said it had raised its FY10-FY11 revenue projection by 1.25%-14.7% and reckoned the acquisition of Axis PDI Centre and Axis TECHNOLOGY [] Centre will be finalised by late 4QFY10.

Full year contribution from both acquisitions had been imputed into our FY11 revenue forecast, it said.

"Nonetheless, we would not factor in the enlarged fund size of Axis REIT prior completion of fund raising exercise, likely in 4QFY10.

"We believe there is room for potential upward re-rating to the fair value given that Axis has two other PROPERTIES [] in the pipeline namely Axis Techpoint 1 in PJ and Axis SADC 2&3 in Shah Alam," it said.

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