Singapore Stock Market News

Ascendas REIT - Positivity dampened

StockFanatic
Publish date: Mon, 20 Jan 2014, 09:33 AM
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AREIT 3QFY14 revenue rose by 6.4% yoy while DPU fell by 2.2% yoy. 9MFY14 DPU accounted for 77% of our FY14 forecast. As the industrial market in Singapore remains challenging and the rental market is expected to slow due to the high supply, we have lowered our FY14/15 revenue forecast by 1.4% and raise our risk-free rate by 30bp to 3.7% to account for a higher interest rates environment.

Maintain Hold rating with a slightly lower DDM-based (discount rate: 7.7%) target price of S$2.36.
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