Brokers' take

Ascendas Real Estate Investment Trust | Buy Target price: S$2.65 Dec 12 close: S$2.39 RHB, Dec 12

A-REIT last week announced the acquisition of the DSO National Laboratories buildings and DNV GL Technology Centre from sponsor Ascendas Land for S$437.5 million (including fees and transaction costs). The acquisition stands out amid a challenging industrial market.

During the current calendar year, it divested all of its three industrial properties in China well above book value. The company is positive amid current challenges in China's industrial property segment. On the other hand, management has increased its exposure to Australian industrial properties, which currently account for nearly 13 per cent of its portfolio. We think this is a good opportunistic move by the Reit as Australian assets provide stability.