On this, Ong has maintained her “buy” call with a higher target price of 90 US cents ($1.23), previously 80 US cents.
"We lower our beta to reflect the relative resilience of US office asset class, owing to the resilience of office-using tenants and long WALEs. Our higher TP is mainly due a lower cost of equity assumption of 9.1% (prev. 10.0%),” she says in a report dated August 5.
Ong has estimated a distribution per unit (DPU) of 6.39 cents, gross revenue of $201 million, and a distribution yield of 8.04 for FY20e.
Units in MUST closed flat at 79.5 US cents on August 6.
