Singapore Stock Market News

Ascendas REIT - Stable but limited growth

StockFanatic
Publish date: Thu, 17 Oct 2013, 12:29 PM
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2QFY14 results were largely in line with our expectations with DPU accounting for 25% of our FY14 estimate. Management indicated that positive rental reversion will continue but industrial market growth in general is seeing a slowdown.

1HFY14 DPU met consensus and our expectations, forming 50% of our full-year estimate. However, after including performance fees into the model, DPU estimates were lowered by 1.8%/1.6% for FY14/FY15 respectively. As a result, we downgrade AREIT to Neutral with a slightly lower DDM-based (discount rate of 7.2%) target price of S$2.47.
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