Digital Core Likely Needs More Portfolio Changes to Boost Asia-Pacific Exposure
Dow Jones
Yesterday
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.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.