Ascendasreit - Ascendas REIT cut to Hold on valuation by Kim Eng

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST
Research House: Kim Eng

Kim Eng Securities downgrades Ascendas REIT (A17U.SG) to Hold from Buy on valuation grounds given limited upside to its $2.40 target price, says Dow Jones.



“While we do not expect any decline in capital value in the near term, all the positives seem to have been priced in”, with price trading at 1.4x book.



Kim Eng says outlook for Singapore’s industrial REIT sector muted as “economic data is none too exciting, given that 2Q most likely marked the peak of Singapore’s GDP growth.”



But broker adds upcoming supply of new industrial space shouldn’t pose major risk to Ascendas given its healthy pre-commitment level of 72% as of June. REIT down 3.9% at $2.20.