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