Its near-term catalysts are yield-accretive acquisitions (expected to be more than 7 per cent yield) and the potential emergence of new shareholders.

“This could raise our 2011-2012 earnings forecasts by 0.1-10 per cent, ARREIT’s shareholder profiles and provide additional funding source for future acquisition,” the research house said.

It maintains its earnings forecasts and discounted cash flow derived target price of RM1.16 per share.
Maybank Investment also noted that ARREIT was said to be close to securing a few assets (retail and office buildings) in the Klang Valley from a government-linked company.

Total value of the assets is estimated to be up to RM300 million and their purchase will be funded through a debt equity mix.

Post-acquisitions, ARREIT’s total asset value will increase by up to 33 per cent to around RM1.2 billion from RM913.3 million currently.

Its management aims to hit RM1.5 billion asset size by June next year.