“Recent refined fee structures will save costs and alleviate some of the pressures from rising utility charges. The REIT has also been boosting its logistics exposure, by acquiring seven logistics assets in the US. Its valuation is attractive at 1.2x FY2022 ending December P/B, offering a 5.5% dividend yield,” Natarajan adds.
RHB Group Research analyst Vijay Natarajan has maintained his “buy” call on Ascendas REIT (AREIT), with a target price of $3.60 representing a 25% upside from the current price of $2.89 as management fee savings from newly inked agreements mitigate rising utility charges.
“AREIT, Singapore’s largest and most well-diversified industrial REIT, offers a good mix of defensiveness and growth potential amid a volatile macroeconomic environment,” writes the analyst.
