Thursday, June 7, 2012

Ascendas REIT

Ascendas REIT: OCBC maintains Buy with $2.22 TP. Note that share price performance has clearly attested to its resilience, gaining 10.4% YTD as opposed to a 4.3% increase in the broader market. The strength is mainly attributable to its diversified portfolio of 102 properties, healthy lease profile, strong sponsor and quality management. Outlook is also expected to remain sanguine, with recent acquisitions and developments likely to contribute positively to its performance. House note that A-REIT’s financial position had been fortified by the recent private placement and divestment of Goldin Logistics Hub. This is likely to provide it with greater financial ability to capitalize on growth opportunities, as well as secure borrowings at potentially more competitive terms to fund its committed investments.

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