Look beyond near-term disruptions
• Recent share price weakness has more than priced in uncertainties on DPU from rental concessions, which will be amortised over a three-year horizon
• Despite market concerns, our scenario analysis suggests DPU impact from an extension of rental concession to more of Yuexiu REIT’s portfolio should still be manageable
• Tax reliefs, potential launch of REIT-Connect and likely pickup of GZ retail sales are potential catalysts ahead
• BUY for its defensive FY22F yield of 7.6% even after the aforementioned disruptions; TP revised down to HK$3.7