Daiwa has upgraded Ascott Residence Trust (A68U.SG) to Outperform from Hold on view price attractive after pullback stemming from recent announcement it will acquire 28 serviced-residence properties from parent CapitaLand (C31.SG), says Dow Jones.

“We believe the pricing and market uncertainty ahead of a proposed equity-fundraising exercise may provide an attractive entry point for value investors,” says Daiwa.

ART last month unveiled $1.39 billion acquisition, to be partly funded by preferential offering, private placement to raise $560.6 million.

Broker says while fund-raising won’t make ART big-cap S-REIT overnight, it might be almost too big for investors to ignore: “At a minimum, it might appear on the radar screens of many more investors after the big leap in market cap.”

Keeps target price at $1.38. REIT +2.7% at $1.16.