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“With forward yields of around 6%, CICT offers the highest yield among its large cap peers which are trading at around 5% yield,” say the analysts.
Believing FY2021 to be the year of recovery as the world progressively emerges from the Covid-19 pandemic, the analysts are positive that the REIT will ride the cyclical recovery trend.
With the imminent release of the vaccine, the analysts believe that a “V-shaped recovery will be the key catalyst to drive valuations close to its historical average (since it was listed) of 1.24x P/NAV”.
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As the largest S-REIT, the analysts view that CICT will eventually be “too big to ignore”.
“The company’s integrated commercial assets will drive synergistic value from its existing portfolio. In addition, its size offers a bigger platform and opportunity to grow with acquisitions of integrated development led by the rising global trend of live-work-play,” they say.
Units in CICT closed 4 cents higher or 2.0% up at $2.08 on Dec 9.
