First half operating earnings per share of 14.5c reflected a respectable growth rate of 3.6%, UBS assesses. Rental abatements were immaterial. The company has maintained guidance for no less than 29.1c per share.
UBS finds the distribution yield of 6% attractive relative to other passive A-REITs. Performance is expected to be capped by concerns about rising long-term bond yields and ongoing equity issuance.
UBS retains its Neutral rating with a target price of $5.20.
Sector: Real Estate.
Target price is $5.20.Current Price is $4.70. Difference: $0.50 – (brackets indicate current price is over target). If CLW meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
