Ascendas REIT - RHB Invest 2016-01-25: Great Opportunity To Buy In

Ascendas REIT - RHB Invest 2016-01-25: Great Opportunity To Buy In Ascendas REIT ASCENDAS REAL ESTATE INV TRUST A17U.SI 

Ascendas REIT : Great Opportunity To Buy In 

  • We think that Ascendas REIT (AREIT SP, BUY, TP: SGD2.50) displays a good opportunity for investors today, as share price has fallen c.7% since last month. 
  • Ascendas REIT announced a great set of 3QFY16 results as its distributable per unit (DPU) was up c.10% YoY, meeting c.78% of our full year estimates. 
  • Its portfolio proves to be strong as it booked in positive rental reversion of 7.3%, in spite of unfavourable supply-demand dynamics within the industrial leasing market. While its occupancy level inched up slightly to c.90%. 
  • We continue to like AREIT as it is highly-diversified, which is great for a weak economic climate today. 
  • In addition, its expiring leases are below market rates. 
  • We expect rental reversion to moderate mid-single digit of 6 to 7% positive rental reversion for the full year. 
  • Maintain BUY.


Ivan Looi RHB Research | http://www.rhbinvest.com.sg/ 2016-01-25
RHB Research SGX Stock Analyst Report BUY Maintain BUY 2.50 Down 2.55


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