Analysts from RHB Group Research and Phillip Securities Research are divided on their recommendations for Ascendas Real Estate Investment Trust (A-REIT) following its acquisition of data centres in Europe.

RHB analyst Vijay Natarajan has maintained his ‘neutral’ rating with a higher target price of $3.20 from $3.15 previously.

He states that the acquisition will help A-REIT “gain a foothold in one of the most in-demand industrial asset classes” and has increased forecasted distribution per unit (DPU) for FY2021 - FY2023 by 1% - 2% to factor in better-than-expected net property income (NPI), which underpins the higher target price.

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