UBS incorporates the acquisition of four office assets in Brisbane, Sydney and Melbourne for $501m into its numbers. The price target is reduced to $2.58 from $2.60 to reflect dilution to financial metrics balanced against the benefits of the transaction.
The broker continues to have a preference for suburban office A-REITs in the small cap segment. Buy rating maintained.
Sector: Real Estate.
Target price is $2.58.Current Price is $2.44. Difference: $0.14 – (brackets indicate current price is over target). If CMA meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).