While Ascendas REIT’s (A-REIT) 1H20 results have come in slightly below OCBC Investment Research’s (OIR) expectations, the brokerage’s research team says it continues to “like” the REIT’s geographically-diverse portfolio and asset class mix.

The team has maintained its “buy” recommendation on the REIT with a higher target price of $3.92, from $3.52 previously.

However, the team has lowered its distribution per unit (DPU) forecast by 3.3% on rental waivers to tenants. It has also increased its FY21F DPU forecast marginally by 0.1% due to A-REIT’s recent proposed Sydney acquisition.

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