Ascendas REIT (AREIT SP) - RHB Securities 2015-10-07: Reiterate BUY recommendation with TP of SGD2.35

ASCENDAS REAL ESTATE INV TRUST A17U.SI

AREIT - Reiterate BUY recommendation with TP of SGD2.35

AREIT (AREIT SP) secured SGD300m worth of subordinated perpetual securities that pays a distribution rate of 4.75%.
Despite being slightly high on its rates, we would like to reiterate that this initiative is still a cheaper alternative to rising more equity from unitholders.
Overall, we like the Australian portfolio acquisition which was announced three weeks ago as we expect a 3.0% uplift to DPU.
We reiterate our BUY recommendation with a TP of SGD2.35.

Ivan looi RHB Securities | Ong Kian Lin RHB Securities | http://www.rhbgroub.com/ 2015-10-07

RHB Securities SGX Stock Analyst Report BUY Maintain BUY 2.35 Same 2.35