Ascendas REIT cut to "hold", target lowered to $2.42 by OCBC

Stock Name: Ascendas Reit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: OCBC

Price Call: HOLD

Target Price: 2.42

SINGAPORE (Jan 23): OCBC Investment has downgraded Ascendas REIT to "hold" from "buy" and trimmed its price target to $2.42 from $2.45.

Current valuations are "fair" as the stock now trades at 1.24 times FY2015 book value, according to OCBC analysts Wong Teck Ching and Eli Lee, who have also lowered their distribution per unit estimates by 1.8% for FY2015 and 2.1% for FY2016 to reflect expected lower net property income margins.

A-REIT's December-quarter DPU came in at 3.59 cents, up from 3.54 cents a year earlier, while revenue rose 11.2% to $171.7 million.

Ascendas REIT held at 'buy' by DBS with target price of $2.49

Stock Name: Ascendas Reit
Company Name: ASCENDAS REAL ESTATE INV TRUST

Research House: DBS Vickers

Price Call: BUY

Target Price: 2.49

SINGAPORE (Oct 24): DBS Group Research has maintained its "buy" call for Ascendas REIT (A-REIT) with a lower target price of $2.49.

In an Oct 24 report, DBS says the improved take-up rate at newly acquired properties and plans for AEIs could underpin A-REIT's growth from 2H15 onwards.

In 2Q15, A-REIT announced a DPU of 3.66 cents which came in line within DBS's expectations.

Gross revenues and net property income were 9% and 7% higher respectively, due to acquisitions while supported by positive rental reversions of around 6.8%.