SEE:Data centre portfolio to strengthen Ascendas REIT
“Management guided that proforma DPU accretion from this transaction is 1.3%, while the blended DPU accretion, including the Australia and US acquisitions in 4QFY2020 ended December 2020 until 1QFY2021 ending March 2021, is 2.4%, in line with its earlier guidance during its equity fundraising exercise,” they say. The analysts note that the acquisition further diversifies A-REIT’s portfolio, with exposure to data centres increasing to 10% of its total portfolio of $15 billion post-transaction, while overseas properties will now account for 40% of the portfolio.
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Lock and Eing reiterate their ‘add’ rating with the higher target price of $3.30 underpinned by DPU estimates for FY2021 to FY2023 raised by 1.35-2.44% to factor in contributions from the new acquisitions. “We continue to like AREIT for its diversified and resilient portfolio and strong inorganic growth visibility,” they say.
As at 11.39am, shares in A-REIT are up 3 cents or 0.98% higher at $3.08.