CapLand Ascendas RE    Last:2.68   -

Ascendasreit

Buoyed by a married trade of 30.5m shares at $2.194 on talks that a hedge fund had bought the stake.

 

Citigroup has raised its projected distribution per unit for the years to March 2008 and 2009 by 0.08 cent for each year, or 0.6%, on belief the REIT has the capacity to fully fund acquisitions by debt. Following the revision, Citigroup is looking at DPU of $0.136 for the year to March 2008 and $0.14 for the following fiscal year.



A-REIT is acquiring two properties - Super Industrial Building and 26 Senoko Way - for a total of $49m. Both properties have 60-year leases with an option to renew for 30 years.



"A-REIT estimated that the acquisitions would have a 0.04 cent (0.34%) impact on its distribution per unit if they were funded using the optimal gearing level of 40% debt and 60% equity," Citigroup said in a note.



Citigroup has a "buy" call on the stock with a target of $2.35.

 

Trend unclear now... even the MAs are criss crossing each other like crazy.

 

Anyone knows who the big buyers and sellers of A Reit are today?

 

I don't think the interest rate has stabilized. I have just received from DBS informing me that the Special Mortgage Rate (SMR)  will be revised from 5.25% pa to 5.50 pa effective from 30 Oct 2006 due to the competitive interbank rates. I was paying 1.50% below SMR and in Nov 2006 I am entitled to only 1.25% below SMR. That means I will have to pay 0.5% higher interest. So the option now is to reduce the borrowing by lump sum payment. I had expected this to happen.

 

hostradamus,

please keep up the good work to inform us from different sources about A-reit.

junction

 

CIMB-GK says it has raised its rating to "outperform" from "neutral" in view of the stabilization of interest rates and the possibility of spillover gains for its business parks from the tight supply of office space here.



Ascendas REIT is to spend $28.6m on a third development at the Changi Business Park here, which would add 0.5% to its proforma distribution per unit of $0.117 for the financial year ending March, CIMB-GK said.



"We previously assumed that Ascendas REIT will add another $1 bln worth of assets to its existing portfolio by 2009. As such, we regard this project as a positive step towards this goal and are keeping our forecasts unchanged," the brokerage said in a note.

 

Creditr Suisse has upgraded its target price to $2.39, saying the industrial landlord is benefiting from spillover demand for office space.



"The tight downtown office squeeze has benefited Ascendas-REIT's business, science parks and high-tech industrial assets. Attracted by the lower rents and availability of larger spaces, occupancies and rents have been improving for those properties," Credit Suisse said in a note to clients.



"The decentralization activity (in the office market) is a good opportunity for Ascendas REIT given that a number of properties remain under-rented. This couldn't come at a better time as logistics and flatted factories rents are expected to be flat in the near to medium term," it added.



Apart from the spillover demand for office space into suburban locations, Credit Suisse said another potential catalyst for Ascendas REIT's share price is if JTC Corp decides to divest its assets via a trade sale instead of spinning off its own REIT.



This would give Ascendas REIT an opportunity to further expand its portfolio of industrial properties.

 

the "invisible" hand at work?

 

Does anyone can explain why A-Reit dropped >5% today? No ex-dividend.

 

many reits, some ok, others not so good.. some cannot maintain payout..

 

thanks to shortists of this counter...SGX buying back i think? manage to unload for some kopi $$ :P

 

now..i m even more tempted to buy...read this dunno how true is it...

The recent volatility in A-REIT?s share price warrants a second

look, we believe. With the review of JTC and Ascendas expected

to be announced in July, A-REIT could stand to acquire assets

from JTC should the review propose divestment of assets.

● Of the portfolio to be divested, JTC?s three business park

properties fits A-REIT?s portfolio best. We estimate that each

business park could be worth at least S$300 mn.Of the portfolio to be divested, JTC?s three business park

properties fits A-REIT?s portfolio best. We estimate that each

business park could be worth at least S$300 mn.

● Even if A-REIT fails to acquire these assets, there is at least

another S$900 mn of assets that can be acquired from Ascendas

and other unrelated third parties in Singapore. With that, A-REIT

is on track to reach its AUM target of S$5 bn by the end of 2010.Even if A-REIT fails to acquire these assets, there is at least

another S$900 mn of assets that can be acquired from Ascendas

and other unrelated third parties in Singapore. With that, A-REIT

is on track to reach its AUM target of S$5 bn by the end of 2010.

● We raised our AUM assumptions to S$3.7 bn by FY07 and

S$4.3 bn for FY08, but have reduced our earnings estimates by

6-7% for FY07-08 due to a more conservative 6-month

contribution compared to a full year contribution previously.We raised our AUM assumptions to S$3.7 bn by FY07 and

S$4.3 bn for FY08, but have reduced our earnings estimates by

6-7% for FY07-08 due to a more conservative 6-month

contribution compared to a full year contribution previously.

● We maintain our NEUTRAL rating and S$2.15 target price.We maintain our NEUTRAL rating and S$2.15 target price.

 

wah...this one now at 1.88...seems attractive leh..should i enter now ? or wait for it to go lower?? seems that CapitalMall oso drop to 2.05 at most...stablised liao??? hee...advice from guru??

 

hi sggal,

thanks for advice...but even looking at the general trend looks like it's down bcos of impending US Fed rate hike...but as the counter price get's lower...isn't the yield return getting more attractive as well??? if you are talking about divident yield play comparable to Fix Dep rate in medium term...this counter and REITs has corrected to an attractive level..make sense ?? :)

 

don't read too much into the day-to-day price movement. you'll go crazy trying to understand it. Look at the general price trend over at least a couple of weeks.

From what I see... most of the REITS are on downtrend. As for why only Acendasreit is only down today while the rest are not, I dunno and don't really care... its only 1 trading day out of many.

 

is it?? comparing to other REITs this seems to be more attractive leh...regardless of RSI...even with RSI of the rest...seems to be in the same direction as well....BUT how come the other REITs cheong ? hee...

 

this one's RSI is on a long term downtrend since mid April. Not surprised that its not doing well.

Plus there is the extra factor of adverse environmental conditions.

 

wah..how come all the other REITs(Allco,MapleTrust,MMPreits)  but cheong BUT this want lao sai ?? hee...dividends yields not attractive enough har?? hee...