Ascendas REIT

Ascendas REIT: OCBC maintains Buy with $2.45 TP. The house is positive that Ascendas REIT (A-REIT) will put up a firm showing in FY14, as it is likely to benefit not only from incremental rental income from The Galen and continued positive rental reversions, but also from the completion of its various investment projects. While the industrial property market was relatively static in 3Q13 amid uncertainty in the manufacturing economy, understand that the demand in the high-tech and business park segments has continued to hold up well. Given A-REIT’s significant exposure in these sub-markets, and believe A-REIT is in better position to shield off any fatigue in the industrial rental market.