Ascendas REIT

Ascendas REIT: In-line results 2Q12 DPU was 3.53c up 4.4% yoy flat qoq with distributable income up 15.1%. 2Q rev is up 18% yoy on new acquisitions & developments. Portfolio occupancy fell by 0.3% pts from previous quarter to 94.3% although rent renewals were higher as passing rents for renewals reflect the subprime period up 12.8%. Existing rentals are expected to be renewed at higher rates when re-tenanted as well Co’s aggregate leverage remains stable at 32.5% Expects acquisitions to slow given compressing cap rates and will focus more on enhancing its portfolio. Annualized yield of approx 5.7%. Co will trade ex-distribution on 24 Oct with the payment due on 27 Nov 2012. CS maintains Neutral but increases TP to $2.29 from $2.01 Deutsche maintains Buy with TP$2.60