PETALING JAYA: Affin Hwang Capital Research has reaffirmed its “buy” rating on YTL Hospitality REIT Bhd at RM1.19 with a higher target price of RM1.38 (from RM1.32) after incorporating the earnings contribution from its recently-acquired Green Leaf Niseko Village hotel.

The research house said with an initial gross yield of 5.25%, against a borrowing cost of around 1%, it expects the deal to be yield accretive.

“Elsewhere, we have trimmed our profit forecasts for the Australian hotels, in view of the lower-than-expected revenue per available room (RevPar) in year-to-date FY19 estimate.

“Overall, we are lifting our FY19-21 estimate distributable earnings per unit by 0.5-2.9%. At a 6.8% FY19 yield, YTLREIT’s valuation looks attractive, in our view,” it said in a report yesterday.

...

Full Article on TheStar