Digital Core Likely Needs More Portfolio Changes to Boost Asia-Pacific Exposure

Dow Jones
昨天

0550 GMT - Digital Core REIT likely needs to reconstitute its portfolio further to expand its Asia-Pacific exposure and narrow its discount to its net asset value, says Citi analyst Brandon Lee in a note. The Singapore-listed real estate investment trust is selling stakes in U.S. data centers while raising its exposure to Asia-Pacific assets, he notes. While this improves its distribution-per-unit accretion, he notes Digital Core's portfolio is still heavily U.S.-dominated, which could cap its units' price performance given a hawkish U.S. interest rate outlook. He also reckons lower management fees in units would deliver better mid-term benefits than unit buybacks. Citi raises its target price to US$0.69 from US$0.68 and maintains a buy rating. Units are up 1.0% at US$0.485.

 

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