Ascendas REIT

Ascendas REIT: Occupancies for MTBs were flat at 90.6% on a same store basis, while portfolio occupancy fell from 94.4% to 93.9% due to the non-renewal of its C&P Logistic Hub. Demand remains broad based, signing 472,459sqm (+17% YoY) of space across a spectrum of industries while seeing a 14.8% positive rental reversion. Leasing remains on track for its AREIT City @ Jinqiao business park (27% committed + 17% under negotiation). Meanwhile, it has pre-committed 40% of the space at its upcoming mixed-use property in Kallang. Management noted that while demand from Financial institutions and light industrial has weakened, there has been increased demand from the Media and ICT industries. In addition, they have not seen significant tenant movements to Iskandar. In addition to the acquisition of its Kallang asset later this year, management continues to evaluate acquisition opportunities and is currently looking at up to 2 deals in Singapore, and $200m in China. The company notes that it will target green field development projects in China, where it can better leverage its brand value and expertise. DB has a Buy rating with TP $2.55.