[%agjS%]
Research by Malacca Securities
Buy - Target Price RM1.27

"Occupancy rate still below pre-pandemic level"

• We kept our forecasted earnings at RM61.5m, RM62.1m, and RM63.2m respectively for FY23-25, taking into account the gradual improvement in occupancy rate towards end-FY23, based on the strategic locations of UOAR’s portfolio properties. Meanwhile, we expect the upcoming MD Status of Menara UOA Bangsar will attract more ICT tenants, which will further enhance the occupancy rate of the portfolio.
• We retained our BUY recommendation on UOAR, with an unchanged target price at RM1.27. The target price is derived by ascribing a P/E of 14.0x to FY23f EPS of 9.1 sen. Meanwhile, the group is committed to reward at least 90.0% of the distributable income of the Trust.
• Risks to our recommendation include the slow recovery in rental activities due to the fundamental shift in the way people work under the post-pandemic environment. Besides, the higher borrowing cost and electricity tariff may continue to weigh on UOAR’s margins and overall financial performance moving forward.

Analyst:
Ng Hui Yee
[%dpRA%]

$KLSE-UOAREIT
Research by Malacca Securities
Buy - Target Price RM1.27

"Occupancy rate still below pre-pandemic level"

• We kept our forecasted earnings at RM61.5m, RM62.1m, and RM63.2m respectively for FY23-25, taking into account the gradual improvement in occupancy rate towards end-FY23, based on the strategic locations of UOAR’s portfolio properties. Meanwhile, we expect the upcoming MD Status of Menara UOA Bangsar will attract more ICT tenants, which will further enhance the occupancy rate of the portfolio.
• We retained our BUY recommendation on UOAR, with an unchanged target price at RM1.27. The target price is derived by ascribing a P/E of 14.0x to FY23f EPS of 9.1 sen. Meanwhile, the group is committed to reward at least 90.0% of the distributable income of the Trust.
• Risks to our recommendation include the slow recovery in rental activities due to the fundamental shift in the way people work under the post-pandemic environment. Besides, the higher borrowing cost and electricity tariff may continue to weigh on UOAR’s margins and overall financial performance moving forward.

Analyst:
Ng Hui Yee
hyng@msec.com.my

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)