Royal Bank of Scotland upgrades Ascendas REIT (A17U.SG) to Buy from Hold, lifts target price to $2.55 from $2.00 on optimism over Singapore's industrial property sector, says Dow Jones.

RBS expects hefty rise in Singapore industrial rents following strong growth in manufacturing sector in 1H10: “All signs suggest tenants in A-REIT's portfolio may look to expand.”

Research house notes A-REIT's tenant retention rate now close to 80%, similar to pre-crisis levels, vs 70% six months ago, with tenants now operating at close to full capacity. Expects A-REIT to acquire more assets to increase portfolio, but notes financing via equity fund raising unlikely as current gearing level comfortable at 34%.

REIT +1.9% at $2.11.