SINGAPORE (Jan 25): DBS Vickers is raising to “buy” its “hold” recommendation of Ascendas India Trust (AIT) with a target price of 91 cents.

“We believe these fears have largely been priced in following the recent 20% share price correction,” says lead analyst Mervin Song in a Friday report, while he is aware of the
potential drag from a weaker INR.

In addition, AIT now trades at a discount to its  adjusted NAV per share and offers an attractive 7.9% yield.

Over the past year, AIT announced several developments including the construction of The V, a new 408k-sqft IT building, as well as the acquisitions of CyberVale, aVance3 and BlueRidge Phase II.

“Coupled with continued growth in the trust’s existing  portfolio, we project a healthy 12% DPU CAGR over the next three years, which is the highest in the S-REIT space,” says Song.

Meanwhile, AIT has access to potential 5.9 million sf of floor area which provides the trust with a visible and sustainable source of growth over the long term.

The ability to execute on these growth opportunities is supported by a healthy balance sheet.

And its gearing of 28% is estimated to rise to just 35% with the planned developments and acquisitions in the next couple of years.

At 10.28am, units of AIT are trading 0.65% higher at 77 cents.