Tuesday, November 23, 2010

Ascendas REIT

Ascendas REIT: Decision to widen investment scope beyond SG to explore Asian acquisition opportunities not expected to move unit price much near term as work still in progress. Still, strategy could pay off in longer haul given stiff competition locally & increasingly challenging conditions for acquiring yield-accretive assets….

In bid to enlarge portfolio, industrial REIT says actively eyeing China opportunities &set up Shanghai representative office. Current business stable & earnings profile backed by long-, short-term leases accounting for weighted average lease to expiry of 5 yrs. But for property income to grow beyond current single-digit rate, acquisition-driven strategy beyond Singapore may need consideration. Resistance at current $2.18 November high and support at last week's $2.02 low.

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