Brokers' take

AIMS AMP Reit | Buy

Target price: S$1.47

March 23 close: S$1.355

Maybank Kim Eng Research, March 22

We fully factor in the downside risk of 20 Gulway's possible non-renewal by master tenant CWT, and assume that it fully converts to a 90 per cent occupied multi-tenanted property.

We factor in one per cent extra vacancies in the rest of the multi-tenanted portfolio to hedge weak demand and strong supply conditions. Even still, our distributions per unit (DPUs) are only docked 1-2.8 per cent.

Applying our yield target of 7.5 per cent raises our target price to S$1.47 from S$1.45 for a 10 per cent capital upside. Upgrad…