S-REITs Weekly - UOB Kay Hian 2020-05-04: Gained 9.3% Last Week

Singapore REITs - UOB Kay Hian | SGinvestors.io ASCENDAS REAL ESTATE INV TRUST (SGX:A17U)

S-REITs Weekly - Gained 9.3% Last Week




WHAT HAPPENED LAST WEEK


UOBKH S-REIT Index gained 9.3% to 231.5 last week.


Top outperformer:


Top underperformer:



SPOTLIGHT – Ascendas REIT (SGX:A17U)


Impeccable execution with strong positive reversion of 8.0%.

  • In Singapore, reversion stood at 7.7% driven by Business & Science Parks (+7.0%) and High-specifications Industrial & Data Centres (+12.2%). Rental reversion for Australia remains high at 13.7% due to healthy demand for logistics properties and suburban offices in Sydney. Rental reversion in the US was healthy at 7.4% (renewed one lease at Portland).

Portfolio occupancy improved 0.8ppt q-o-q to 91.7%.

  • Singapore occupancy improved by 1.4ppt q-o-q to 88.6%, benefitting from higher demand for logistics space. Occupancies in Australia and the UK were stable at 97.3% and 97.5% respectively.

Diversified customer base of 1,490 tenants.

  • Industries that are relatively more resilient, such as financial services, government, data centres and biomedical, contributed about 50% of Ascendas REIT’s gross revenue. Industries that are more affected by the COVID-19 pandemic, such as retail, aviation, oil & gas and hospitality & leisure, made up less than 15% of gross revenue. SMEs accounted for less than 20% of gross revenue.

Maintain BUY.


See attached PDF report for S-REIT peer comparison table.






Jonathan KOH CFA UOB Kay Hian Research | Peihao LOKE UOB Kay Hian | https://research.uobkayhian.com/ 2020-05-04
SGX Stock Analyst Report BUY MAINTAIN BUY 3.350 SAME 3.350



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