The analysts also point out that they believe investors have neglected A-REIT’s myriad of structural tailwinds. These range from e-commerce, data-centers and office decentralisation, which would drive earnings and capital values higher in the longer term.
DBS analysts Dale Lai and Derek Tan have maintained their “buy” recommendation on Ascendas REIT (A-REIT) with a target price of $4.00, representing more than 30% potential share price upside.
In a note, the analysts say that A-REIT offers an attractive yield of about 5.6%, more than 100 basis points higher than other large-cap industrial Singapore REIT peers.
