KUALA LUMPUR (Dec 16): CIMB Research has maintained its “Hold” rating on KLCC Property Holdings Bhd at RM6.50 with an unchanged target price of RM6.90 and said that in the current market conditions, REITs could provide a safe haven for capital preservation given its stable dividend yields.
In a note Tuesday, the research house said during its recent tour of some of KLCCP's assets, it was pleasantly surprised that Menara ExxonMobil still looked relatively new despite being almost 18 years old.
“This gives us confidence that it will not face issues extending its tenancy when it expires in 2017. We were also impressed by Menara 3, which was more recently built (in 2011) and houses Petronas's offices and other O&G companies.
“While the offices were impressive, we understand that KLCCP's acquisition pipeline remain scarce in the next 1-2 years.
“We maintain our Hold call and DDM-based target price of RM6.90. For exposure to M-REITs, we prefer Axis REIT,” it said.
TOP PICKS BY EDGEPROP
Taman Wawasan, Pusat Bandar Puchong
Puchong, Selangor
Fraser Business Park
Sungai Besi, Kuala Lumpur
Ambrosia @ Kinrara Residence
Puchong, Selangor
Kinrara Residence
Bandar Kinrara Puchong, Selangor
Taman Perindustrian Bukit Serdang
Seri Kembangan, Selangor