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MOST analysts are upbeat on Al-Hadharah Boustead Real Estate Investment Trust (REIT), saying there should be further upside to the stock's performance.A local analyst said while market sentiment remained weak, the Al-Hadharah Boustead REIT could continue to perform well in the medium to long-term.Despite uncertainties in the US economy, industry experts are bullish on plantation as palm oil supply is still tight and expect CPO prices to trade above RM2,500 per tonne – AFP “Our confidence in the REIT stems from the prevailing positive trend in the global commodities markets and buoyant crude palm oil (CPO) prices,” he told StarBiz.Last Friday, the CPO price closed at RM3,543 per tonne and commodity price is expected toremain firm in the near-term.Currently, Al-Hadharah Boustead REIT was the only oil palm plantation REIT listed on Bursa Malaysia and was shariah-compliant.The analyst said: “The REIT manager plans to grow its asset base and expects to acquire at least two more plantations before year-end to add to its stable of eight palm oil estates and two palm oil mills in Peninsular Malaysia.”“The new plantations should translate into better performance of the trust,” he added.Tan Sri Lodin Wok Kamaruddin At the end of last year, Al-Hadharah Boustead REIT had a market capitalisation of RM665mil covering 12,000ha, making it arguably the second largest REIT listed on the exchange at that time. read more
