PETALING JAYA: The extension of the movement control order (MCO) is expected to negatively impact the real estate investment trust (REIT) sector, especially businesses with retail assets.
Public Invest Research said, in a report, it has revised downward its fair values to factor in higher risk premium and impact from the MCO, especially on retail-based asset owners.
“We cut IGB REIT’s and Sunway REIT’s 2020 earnings by 10% and 13%, respectively. Correspondingly, we reduce the target prices for IGB REIT and Sunway REIT to RM1.72 (from RM1.95) and RM1.70 (from RM1.93) respectively.
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