Brokers' take

Ascendas Reit | Add Target price: S$2.89 July 31 close: S$2.75 CGS-CIMB, July 30

Ascendas Reit's (Areit) Q1 FY2019 revenue grew 1.5 per cent year-on-year due to the acquisition of three Australian properties, completion of 50 Kallang Ave and 20 Tuas Ave 1 redevelopment, 10 Woodlands Link, 13 International Business Park and 84 Genting Lane as well as positive rental reversion.

AReit announced a new asset enhancement initiative (AEI) for 138 Depot Rd in Q1 FY2019 worth S$3.9 million, bringing total AEIs to S$26.1 million. These three initiatives are slated for completion from H2 FY2019 onwards. The trust has also announced the acquisition of Ferntree Gully Drive in Melbourne and 1-7 Goss Drive in Brisbane for a total of A$47.2 million (S$47.71 million), and the divestment of 41 Changi South Ave 2 for S$13.6 million. In addition, it recently announced its maiden acquisition of 12 logistics properties in the UK for S$373.2 million or at an initial property yield of 5.32 per cent, with the trust looking to deepen its UK presence.