0620 GMT - First REIT's units face overhang from growing rental arrears from Indonesian tenant Metropolis Propertindo Utama, DBS Group Research's analysts say in a research report. DBS turns more cautious on the REIT, given outstanding rentals of S$7.9 million as of end-3Q and arrears dating back to 4Q 2022. Worst-case scenario of a full write-off on the tenant's rentals could lead to 12% reduction in DBS' distribution-per-unit estimates for the REIT. DBS also trims its 2024 and 2025 distribution-income forecasts for the REIT by 1% to reflect assumptions for a weaker Indonesian rupiah against Singapore dollar. DBS cuts the unit's rating to hold from buy and its target price to S$0.28 from S$0.29. Units are unchanged at S$0.27. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
November 05, 2024 01:20 ET (06:20 GMT)
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