Ascendas REIT - Ending on a good note

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

Research House: CIMB

Price Call: HOLD

Target Price: 2.15

The good news in 4Q12 came from positive rental reversions and higher take-up rates. Management also sounded a positive note, citing a general pick-up in sentiment. Our main grouse, however, remains a lack of compelling catalysts for upsides from the current levels. 4Q12/FY12 DPUs were in-line with consensus and our estimates, forming 26%/99% of our full-year forecast. We raise DPUs slightly to factor in new AEI but keep the DDM-based target price (discount rate: 8.6%) unchanged. Maintain Neutral.

Source: CIMB Daybreak - 18 April 2012, Full PDF Report