Brokers' take

YTL Starhill Global Reit | Buy April 25 close: S$0.795 Target price: S$0.84 DBS Group Research, April 25

With about 44 per cent of topline derived from master leases or long leases, the Reit offers investors income stability and visibility, as well as upside potential from positive rental reversions embedded in the master leases.

Wisma Atria (Singapore)'s occupancy has dropped to 96.8 per cent from 100 per cent a year ago. This is largely due to tenant mix reconfiguration and the renovation at Isetan since April 2015. We understand that the manager is looking to potentially convert level 1 from fashion to F&B-focused, which would consist of stickier tenants but may yield lower rents. This is expected to drive higher footfalls for the floor going forward. We estimate that the overall impact will be minimal as level 1 of Wisma is estimated to only account for 0.9 per cent of the total portfolio revenue.