OCBC upgrades A-REIT to buy from hold

Stock Name: Ascendasreit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: BUY

Target Price: 2.23

OCBC Investment Research upgraded Singapore’s Ascendas Real Estate Investment Trust, which owns industrial properties, to buy from hold and raised its share-price target to $2.23 from $2.17.

OCBC raised its fiscal 2012 forecasts for A-REIT by 2.4-5.7% to reflect its strong second-quarter results.

A-REIT said total amount available for distribution increased 14.1% to $70.5 million in the second quarter, helped by higher gross revenue from completion of investment projects.

“A-REIT continued to deliver during the quarter, despite the current uncertain economic environment,” as its occupancy rates improved and it achieved positive rental reversion, OCBC said.

At 11:40 a.m., shares of A-REIT were down 0.5% at $1.985.