Lock Mun Yee, an analyst from CGS-CIMB, reiterated the Buy rating on CapitaLand Ascendas REIT (ACDSF – Research Report). The associated price target is S$3.06.
Lock Mun Yee has given a Buy rating to CapitaLand Ascendas REIT based on a variety of factors. Notably, the REIT has demonstrated robust operations with strong rental uplift and consistently high occupancies, which are indicative of the underlying strength of the portfolio. Moreover, despite a slight dip in distribution income due to higher interest expenses, CapitaLand Ascendas REIT has shown resilience with its revenue and net property income (NPI) witnessing year-on-year growth. This performance is attributed to contributions from new acquisitions and the improved performance of existing assets.
Additionally, the analyst appreciates the REIT’s diversified and resilient portfolio, as well as its healthy balance sheet. The potential for positive rental reversions and the ongoing asset enhancements expected to improve returns by the first quarter of 2026 further support the optimistic outlook. While the analyst has adjusted the distribution per unit (DPU) estimates downward to account for increased funding costs, the unchanged discounted dividend model (DDM)-based target price reflects a forward-looking valuation. The report also hints at potential catalysts for the stock, such as a faster-than-expected global recovery and accretive acquisitions, which could bolster the REIT’s financial performance going forward.
ACDSF’s price has also changed slightly for the past six months – from $2.150 to $2.135, which is a -0.70% drop .
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CapitaLand Ascendas REIT (ACDSF) Company Description:
Ascendas Real Estate Investment Trust is a real estate investment trust focusing on the industrial and business space. Its property portfolio consists of 200 properties, including 35 properties in Australia, 38 properties in the U.K., and 28 properties in the U.S. The property types encompass business and science parks, high-specification industrial properties, data centres, light industrial properties, logistics and distribution centres, integrated development, amenities, and retail properties. The trust is externally managed by parent Ascendas Singbridge, which owns a 20% stake in the trust.
