Ascendas REIT (AREIT)

SGX explains why Singapore is Asia's largest global REIT platform

(May 6): On March 27, during Manulife US Real Estate Investment Trust’s Investor Day event, Ronald Tan, director of Equity Capital Market at the Singapore Exchange, asked the audience a few questions. It was to gauge the public’s reception to various asset classes. Who would want another office REIT, Tan asked. Almost the entire audience of 400 raised their hands. MUST is an office REIT and the audience comprised MUST unitholders.


Ascendas REIT poised to benefit from current rate environment, but yields may be tight

SINGAPORE (April 30): Maybank Kim Eng and OCBC Investment Research are maintaining their “buy” and “hold” calls on Ascendas REIT (AREIT) while raising their price target and fair value estimate to $3.20 and $2.74 from the previous $3.10 and $2.64, respectively.

This comes after the REIT manager declared a 4Q19 DPU of 4.1 cents, up 6.1% y-o-y on revenue growth and lower non-property expenses, and in line with both research houses’ expectations.

AREIT posts 6.1% increase in 4Q DPU to 4.1 cents on higher revenue, lower non-property expenses

SINGAPORE (Apr 29): The manager of Ascendas REIT (AREIT) announced that its 4Q19 DPU has increased by 6.1% to 4.148 cents compared to 3.910 cents in 4Q18, with amount available for distribution increasing by 12.7% y-o-y to $129.0 million.

This brings FY19 DPU to 16.035 cents, 0.3% higher than 15.988 cents in FY18.

As at end March, the REIT’s total portfolio consists of 171 properties – 98 properties in Singapore, 35 properties in Australia and 38 properties in UK.

AREIT, EREIT kept at 'add' by CGS-CIMB despite Hyflux link

SINGAPORE (Mar 7): CGS-CIMB Securities is maintaining Ascendas REIT (AREIT) and ESR REIT (EREIT) at “add” despite Hyflux’s debt-restructuring woes.

This was after the Public Utilities Board on Tuesday issued a default notice to Hyflux subsidiary  Tuaspring reminding the water company it has to fulfil its contractual obligations.

Prior to the notice, creditors and security holders were asked to file their proofs of claims with Hyflux for its business and debt restructuring exercise.

Market valuations may be inexpensive but stay defensive: RHB

SINGAPORE (Jan 2): RHB Research prefers to stay selective and defensive amid growth uncertainties in 2019.

The Straits Times Index (STI), down 12% in USD terms, could remain under pressure this year amid slowing GDP growth and an uncertain trade outlook due to China-US tensions.

In a Wednesday report, analyst Shekhar Jaiswal says, “While 12.6x forward P/E and 4.2% dividend yield make the STI’s valuations look compelling, we recommend investors stay selective and focus on buying stocks offering stable earnings, strong balance sheets, and sustainable dividends.”

RHB overweight on SREITs despite interest rates worry

SINGAPORE (Oct 16): RHB is reiterating its “overweight” rating on Singapore REITs (SREITs), as it believes that selective SREITs still offer value for investors, despite lingering concerns over rising interest rates.

In a Tuesday report, analyst Vijay Natarajan says, “While we do not expect a broad-based sector outperformance, we believe SREITs with stock-specific catalysts continue to find favour.”

Currently, SREITs are trading at an average yield spread of 380 basis points to the Monetary Authority of Singapore’s (MAS) 10-year bond yield.

Singapore developers cede to REITs as investors' top pick

(Sept 25): Buy the businesses that hold the real-estate assets rather than the ones that sell them.

That’s the message from a growing number of analysts in Singapore who say REITs, or real estate investment trusts, are a better bet than developers in light of the island’s recent cooling measures.

AREIT to strengthen positioning in UK and Singapore

SINGAPORE (Sept 10): CGS-CIMB is maintaining its “add” call on Ascendas Real Estate Investment Trust (AREIT) with a target price of $2.89.

This came on the back of the REIT announcing a private placement of 178 million units at $2.54 apiece to raise $452.1 million in proceeds to partly fund the proposed acquisition of a second UK logistics portfolio worth about $250 million, the proposed development of a new built to suit (BTS) property in Singapore worth $109 million, as well as to pare down $87.1 million of debt.

Ascendas REIT to acquire portfolio of 12 UK logistics properties for $373 mil

SINGAPORE (July 26): Ascendas REIT is expanding its footprint beyond Asia and Australia into Europe, through the proposed acquisition of a portfolio of 12 logistics properties located in the United Kingdom.

The properties will be acquired from two third-party vendors, Oxenwood Catalina Midco Limited and Oxenwood Catalina II Midco for £207.27 million ($373.15 million).

Completion is expected to take place in the third quarter of 2018.

On the cusp of recovery, office and hospitality S-REITs worth a closer look

SINGAPORE (May 31): DBS Group Research says this could be a good time to scoop up S-REITs of selected office and hotel names given supply pressures in these sub-sectors have eased.

In a Thursday report, lead analyst Mervin Song says the oversupplied market over the past few years which resulted in muted S-REIT performance and decline in DPUs for several REITs has given way to a turnaround in the Singapore property market.

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