SINGAPORE (Aug 10): Daiwa is downgrading Fortune REIT to “outperform” from "buy" with a higher target price of HKD10.90 ($1.88) from HKD9.65 previously, following the REIT’s recent unit-price rally.

This comes despite the research house’s observations of “good DPU growth prospects” from Provident Square mall, which is currently undergoing asset enhancement initiatives (AEI) work, as well as the belief that Fortune REIT is “still well-positioned to deliver steady DPU growth”.

In a Tuesday report, analyst Jonas Kim says his recent visit to Provident Square has reinforced the research house’s view that the REIT is a “rising player within the Hong Kong retail property sector, driven by its expanding portfolio and improving credentials in executing AEI work”.

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