KUALA LUMPUR (Dec 31): Affin Hwang Capital Research has maintained its “Buy” rating on YTL Hospitality REIT at RM1.19 with a higher target price of RM1.38 (from RM1.32) after incorporating the earnings contribution from its recently-acquired Green Leaf Niseko Village hotel.
In a note today, the research house said with an initial gross yield of 5.25%, against a borrowing cost of c.1%, it expects the deal to be yield accretive.
“Elsewhere, we have trimmed our profit forecasts for the Australian hotels, in view of the lower-than-expected RevPar in YTD FY19E.
“Overall, we are lifting our FY19-21E distributable EPU by 0.5-2.9%. At a 6.8% FY19E yield, YTLREIT’s valuation looks attractive, in our view. Reaffirm BUY call,” it said.