Stock Name: QCAPITA
Company Name: QUILL CAPITA TRUST
HwangDBS Vickers Research has maintained its 'buy' call on Quill Capita Trust with a target price of RM1.45, as the company continues to perform.
This is despite a tenant's market in the office segment and Quill Capita Trust enjoys an evenly distributed lease expiry profile as well as diversified set of tenants.
In a note today, the research house said the near-term earnings growth for Quill Capita Trust will be soft, given the low rental reversion capacity, in lieu of the large incoming office supply to flood the market from 2013-2014.
"Though average rents have inched up marginally quarter-on-quarter for four consecutive quarters, as at the fourth quarter of 2012, the large supply overhang still places pressure on Quill's asset portfolio.
"But it will be mitigated by 44 per cent of its assets based in Cyberjaya where supply is not expected to increase as much as in Klang Valley," it added.-- Bernama
Company Name: QUILL CAPITA TRUST
| Research House: HWANGDBS | Price Call: BUY | Target Price: 1.45 |
HwangDBS Vickers Research has maintained its 'buy' call on Quill Capita Trust with a target price of RM1.45, as the company continues to perform.
This is despite a tenant's market in the office segment and Quill Capita Trust enjoys an evenly distributed lease expiry profile as well as diversified set of tenants.
In a note today, the research house said the near-term earnings growth for Quill Capita Trust will be soft, given the low rental reversion capacity, in lieu of the large incoming office supply to flood the market from 2013-2014.
"Though average rents have inched up marginally quarter-on-quarter for four consecutive quarters, as at the fourth quarter of 2012, the large supply overhang still places pressure on Quill's asset portfolio.
"But it will be mitigated by 44 per cent of its assets based in Cyberjaya where supply is not expected to increase as much as in Klang Valley," it added.-- Bernama
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