Lendlease REIT - CGS-CIMB Research 2022-03-22: Buy On Dip

Lendlease REIT - Buy On Dip

  • Lendlease REIT (SGX:JYEU) launched equity fund raising (EFR) at S$0.72 to S$0.74 (7.1% to 9.6% discount to volume weighted averaged price (VWAP)) to acquire Jem. The EFR amount is lower than the initial plan of S$718m due to the weak share price recently. Hence, we think Lendlease REIT may look to raise more debt/perp to make up the funding shortfall.
  • ADD on dip. Lendlease REIT's share price is trading at an attractive ~6% DPU yield at current price. Post-acquisition of Jem, Lendlease REIT will be the 16th largest S-REIT by AUM.
  • We expect the easing COVID-19 measures, improved income quality post-Jem acquisition and strong DPU growth in FY23 to catalyse Lendlease REIT.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-22
SGX Stock Analyst Report ADD MAINTAIN ADD 0.954 SAME 0.954

Read also CGS-CIMB's most recent report:
2022-11-08 Lendlease Global Commercial REIT - Good Leasing Traction To Kick Start The Year

Target prices by 2 other brokers at Lendlease REIT Target Prices.
Listing of broker reports at Lendlease REIT Analyst Report.

Relevant links:
Lendlease REIT Share Price History,
Lendlease REIT Announcements,
Lendlease REIT Dividends & Corp Actions,
Lendlease REIT News Articles


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