Ascendas REIT (A-REIT)

Scope for A-REIT to grow inorganically with deeper Aussie presence and new UK portfolio

SINGAPORE (July 31): The manager of Ascendas REIT (A-REIT) reported 1Q19 revenues and net property income of $216.6 million and $159.2 million, which were 1.5% and 3.8% higher y-o-y respectively.

See: Ascendas REIT reports lower 1Q DPU of 4.002 cents on absence of one-off

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.

Analysts keep Ascendas REIT at ‘buy’ on acquisition contributions and organic growth

SINGAPORE (Apr 24): Research houses RHB, CIMB, DBS and Maybank are maintaining their “buy” call on Ascendas REIT while OCBC is the only research house with a “hold”.

A-REIT’s 4Q18 DPU grew 1.5% y-o-y, mainly due to the acquisitions of DNV/DSO in Singapore, 52 Fox Drive in Melbourne as well as 100 & 108 Wickham in Brisbane.

The redeveloped 50 Kallang Ave, which was fully leased to Schneider Electric, also contributed.

Gross revenue for 4Q18 rose 3.3% y-o-y to $215.7 million while full-year gross revenue increased 3.8% to $862.1 million.

Where should investors turn amid the global logistics boom?

SINGAPORE (Apr 20): As global growth takes off and technology reshapes the economies of Singapore and the rest of Southeast Asia, demand for logistics properties is shifting.

Not only is the volume of goods that need to be moved rising, but a growing proportion of this merchandise is headed directly to the doorsteps of customers instead of the shelves of big department stores, because of e-commerce.

Six S-REITs to jump back on as sector bottoms out

SINGAPORE (Mar 19): DBS Group Research is remaining upbeat on Singapore REITs (S-REITs) given investors are looking for re-entry opportunities with the recent correction in unit prices.

The research house says with lower prices, yields have inched up by between 0.5bps and 6.0bps with upside surprise coming from an expected rebound in rental growth rates.

The strength of the SGD versus regional currencies is also another reason, says lead analyst Derek Tan in a Monday report.

Improved tax transparency treatment of REIT ETFs expected to boost yield

SINGAPORE (Mar 6): UOB Kay Hian is staying "overweight" on REITs given improved tax transparency treatment of REIT exchange traded funds (ETFs) is expected to boost yield and proliferation of the instrument.

This means key constituents of FSTREI (FTSE ST Real Estate Investment Trusts Index) and ETFs should also benefit as greater fund flow should support valuations.

Ascendas REIT's latest acquisition in Australia to provide earnings stability

SINGAPORE (Sept 26): RHB is maintaining its “buy” recommendation on Ascendas REIT (A-REIT) with a target price of $2.90.

This follows A-REIT’s Monday announcement it has completed the acquisition of No. 100 Wickham Street (100WS), a CBD fringe office property in Queensland, Australia, for $90.3 million, from seller 100W.

See: Ascendas REIT acquires CBD fringe office property in Australia for $90 mil

8 Singapore REITs & property stocks to ‘buy’ on improving market sentiment: DBS

SINGAPORE (Aug 28): DBS Group Research is positive on Singapore’s property stocks and REITs given the real estate market is expected to continue enjoying firmer fundamentals going into 2018.

In a Monday report, DBS notes that investors are still keen on increasing their exposure to developers in the event their prices weaken in the near term.

That's because they expect developer stocks to continue trading up in tandem with improving residential market sentiment.

Falling rents expected to persist for Industrial REITs

SINGAPORE (Aug 22): Phillip Securities Research is keeping its “equal weight” rating on the industrial REITs sub-sector amid prolonged negative reversions.

“Our previous view was for rents to bottom in 2017. We now believe rents to bottom only by the end of 2018,” says analyst Richard Leow in a report on Friday.

17 hot stock picks following a season of strong 2Q gains

SINGAPORE (Aug 17): UOB Kay Hian has upgraded its FTSE Straits Times Index (FSSTI) target forecasts up to 3,410 from 3,250 previously on “pockets of solid outperformances”  in the 2Q17 financial reporting season, which concluded this week.  

In a Thursday report, analyst Andrew Chow recaps on what he calls an encouraging 2Q17 reporting season, which saw 28% of companies reporting results that exceeded UOB’s expectations versus 24% in the previous quarter – with the beats concentrated on banks and technology/exporters.

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