Digital Core REIT's Guidance May Prompt Peers to Follow Suit
Dow Jones
7 hours ago
0815 GMT - Digital Core REIT's guidance for FY 2027 could encourage more Singapore-listed real-estate investment trusts to follow suit, potentially boosting unit prices for REITs trading at steep discounts to their net-asset values, Citi analyst Brandon Lee says in a note. Digital Core's forward guidance includes an estimated distribution per unit of 4.15-4.25 cents, partly thanks to full-year contribution from a portfolio reconstitution. While majority of REITs give rough projections on debt cost and rent reversions, none besides CapitaLand Ascott Trust guides on distributions per unit, he notes. Citi retains its buy rating and 69 cents target price for Digital Core on cheap valuations. Units are flat at 42 cents.
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