Three brokerages are recommending ‘buy’ or ‘add’ on Ascendas REIT following news of proposed acquisitions in the US, Europe and Australia earlier this week, which are expected to be distribution per unit (DPU) accretive. 

“AREIT has announced the proposed acquisition of two US office properties as well as potential purchase of a portfolio of data centres in Europe and a suburban office in Australia. The latter two are subject to completion of negotiations with vendors and satisfactory due diligence,” say CGS-CIMB analysts Lock Mun Yee and Eing Kar Mei in a Nov 10 note. 

CGS-CIMB is maintaining ‘add’ on the REIT, with an unchanged target price of $3.20. Meanwhile, OCBC Investment Research and Maybank Kim Eng are recommending ‘buy’ on AREIT with target prices of $3.92 and $4.00 respectively. 

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