Brokers' take

Ascendas Reit | Neutral (downgraded) March 7 close: S$2.83 Target price: S$2.90 RHB Research Institute, March 7

Ascendas Reit is our top industrial Reit pick and is among the best-performing S-Reits. While remaining optimistic on its prospects of capitalising on an industrial sector turnaround, valuations are approaching their fair value.

Despite uncertainties, Ascendas Reit's portfolio achieved positive rental reversion of 3.2 per cent for Q3 FY2019. Management expects to see a slight improvement in rental reversions ahead, which we estimate to be between 2-5 per cent. However, occupancy rates for its Singapore industrial portfolio dipped to 87.3 per cent, which we believe was mainly on weakness in the logistics sector.