Ascendas REIT

Ascendas REIT: OCBC maintains Buy with $2.31 TP. REIT reported that the acquisition of the Cintech properties was completed on 29 Mar at a total consideration cost of S$185.5m. No consideration units were issued as its sponsor Ascendas Land had indicated that it did not wish to receive any equity consideration. As a result, the purchase consideration was fully paid in cash by way of internal resources and drawdown of debt.

Estimate A-REIT’s aggregate leverage to be around 36% after factoring in revaluation gains for its portfolio properties. Also note that A-REIT’s Singapore properties continue to achieve positive rental reversions of 2.6-12.5% YTD upon renewal of its existing leases. This is in line with view that A-REIT’s operating performance is likely to stay resilient in the coming quarters. .