Ascendas Reit

Ascendas Reit: Credit Suisse downgrades to U/p and reduces TP to $2.01 from $2.33. Downgrading on back of slowing growth and higher risk profile. New TP assumes higher risk profile due to increased exposure and risk of overbidding for devt projects, JTC and overseas assets. Recommend a switch from AREIT to Mapletree Logistics Trust (MLT), as MLT is less vulnerable to SG’s GDP slowdown (50% of rev from overseas) and offers a more attractive yield of 7.1% FY11E.