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Ascendas REIT: Upside from US portfolio, network effect and potential acquisition to underpin higher unit price

Goola WardenFri, Jan 17, 2020 • 07:00 AM GMT+08 • 4 min read

Ascendas REIT: Upside from US portfolio, network effect and potential acquisition to underpin higher unit price

Following the rights issue, gearing is likely to be lower at 35% from 36.2% as at Sept 30, 2019. At a pro forma DPU of 16.3 cents, Ascendas REIT is trading at 5.29%, and at 1.4 times its post-acquisition book value. DBS Research reckons that built in re

SINGAPORE (Jan 17): As at Jan 14, the market cap of Ascendas Real Estate Investment Trust (Ascendas REIT) stood at $11.1 billion, making it Singapore’s largest REIT.

Pro forma assets under management as at Dec 31 were $12.8 billion, including the recently acquired US portfolio of 28 properties, Nucleos and FM Global which cost $1.8 billion. Because of its size and high A3 rating by Moody’s, Ascendas REIT is a constituent of many indices such as MSCI, FTSE EPRA/NAREIT Developed Market Index and The Straits Times Index.

To fund the acquisition, Ascendas REIT raised $1.31 billion through an accretive rights issue. The REIT’s unit price is up 5.8% since mid-December, following the completion of the rights issue (results were announced on Dec 2) and the acquisition of the properties announced on Dec 11.