Time to hit pause on IREIT Global?

SINGAPORE (Aug 12): DBS Vickers Securities is downgrading IREIT Global from “buy” to “hold” with an unchanged price target of 77 cents.

While DBS sees potential for an increase in the value of IREIT’s portfolio as a result of further cap rate compression given the negative interest rates in Europe, the research house expects “uncertainties” to force the REIT’s unit price to “take a breather”.

Among them are the potential 80% acquisition of IREIT’s manager by Tikehau Capital, an European investment manager, as well as any new strategies for IREIT which may entail an equity-raising exercise to fund its acquisition of new properties in Europe.

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