A-REIT : UOBKayHian

BACKGROUND

Ascendas Real Estate Investment Trust (A-REIT) is the largest industrial REIT in Singapore in terms of market capitalisation and portfolio size, with exposure to Singapore alone. It has some of the best attributes among Singapore REITs: strong parental support, solid track record and execution capabilities, quality tenant profile, and a large and diversified portfolio. AREIT posted good FY07 results, with net distributable income up 14.9% yoy to S$163.8m, translating into a DPU of 12.75 cents. Portfolio occupancy also hit a high of 96.6% vs 95.0% in FY06.

OUTLOOK/RECOMMENDATION