The outlook is stable. Full year contribution from JV platform of US data centres to adequately offset any softness from the Singapore portfolio in the year ahead. The manager expects softer leasing from Flatted Factories, while Business Park Buildings to remain fairly strong.
Maintain Neutral; lower target price of $2.09 (previously $2.15)
Estimated yield of ~6% should be stable, but current valuation is rich. Forward P/NAV multiple is now about +2 standard deviations above the historical average, and we are cognisant of the risk of it reverting to mean. Our target price represents an implied 1.48 times FY19e P/NAV multiple.
Update to New Data Centre BTS
The manager expects completion to be in July or August this year.
Figure 1: BTS Project – 12 Sunview Drive
Source: Company FY17/18 Financial Results Presentation, 23 April 2018