'Add' Ascendas REIT on venture into European data centres: CGS-CIMB

Following Ascendas Real Estate Investment Trust’s (A-REIT) announcement of its acquisition of 11 data centres in Europe, CGS-CIMB Research analysts Lock Mun Yee and Eing Kar Mei have reiterated their ‘add’ rating for the counter with a higher target price of $3.30 from $3.25 previously. 

The analysts note that the acquisition is expected to be value accretive to A-REIT’s distribution per unit (DPU), with an initial property yield of 6% (post-transaction-cost yield of 5.7%).

---

SEE:Data centre portfolio to strengthen Ascendas REIT

---