Brokers' take

Ascendas Reit | Buy

Target price: S$2.50

May 18 close: S$2.32

DBS Group Research, May 18

WE continue to believe Ascendas Reit (A-Reit) will deliver stable returns, supported by a prospective yield of 6.1 per cent. Gearing of 37 per cent will give the Reit headroom to acquire. A-Reit reported a 7 per cent rise in average rentals during renewals in FY2016, which in our view is a good showing despite ongoing headwinds. Rental reversionary outlook is likely to turn more muted given closing gap between market and passing rental levels. A-Reit has acquired assets worth more than S$1 billion in…