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

Atiqah Mokhtar
Atiqah Mokhtar3/18/2021 11:36 AM GMT+08  • 2 min read
'Add' Ascendas REIT on venture into European data centres: CGS-CIMB
TP has been raised to $3.30 to factor in contributions from the REIT's new acquisitions.
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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

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