Wilkie Edge, a 12-storey integrated development comprising office space, retail units and a serviced residence. (Photo: REITsWeek)

Against the backdrop of news that CapitaLand Commercial Trust has received regulatory approval to redevelop the Golden Shoe Carpark, Maybank Kim Eng has separately reiterated a ‘Buy’ rating on the REIT.

The firm also described the office REIT’s DPU for 1Q 2017 as being in line with expectations, despite negative rental reversions at Six Battery Road that weighed down on portfolio passing rents.

“We reiterate our view that office rents could bottom in early 2018 and recommend positioning ahead of this”, said Maybank Kim Eng in a research note on 20 April.

“Improving pre-commitments at new office buildings may translate into less pressure on landlords to discount rents to fill up properties”, the firm added.

Besides reaffirming the ‘Buy’ rating, Maybank Kim Eng has also maintained a target price of SGD1.81 on the REIT, with a yield target of 5.0%.

Units of CapitaLand Commercial Trust last traded on the Singapore Exchange at SGD1.62.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.