DBS Group Research is keeping its “buy” recommendation on Ascendas REIT (A-REIT) with a target price of $4.00.

In a September 24 report, lead analyst Derek Tan says, “Cheaper than its large-cap industrial peers at a 5.0% forward yield and 1.6 times P/NAV, we believe that A-REIT is poised to ‘catch-up’ given similar growth profile of a DPU CAGR of 4.5% over FY21- 23.”

Currently, the A-REIT’s share price is up by 8% YTD, but is noted to have underperformed its industrial large-cap S-REIT peers by 15%.

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