SINGAPORE (Jan 25): OCBC has kept its “buy” call and target price of $2.50 on Ascendas REIT (A-REIT) following its 3Q numbers that came in within expectations.

The industrial property landlord posted a distribution per unit of 3.946 cents, which is 9.9% higher y-o-y. Gross revenue in the same period was up 12.9% y-o-y $193.8 million, led by higher contributions from it properties in Australia as well as higher rentals collected elsewhere. Its portfolio occupancy inched up 0.2 points q-o-q to 89.2%.

“A-REIT enjoyed a robust leasing cycle in 3QFY16, delivering a 7.3% increase for its renewal rates as compared to its previous contracted rates. This was broad-based across all its segments. Approximately 6.2% of A-REIT’s revenue is due for renewal for the remainder of FY16 and management expects moderate positive rental reversions,” states OCBC in its Jan 25 report.

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