Ascendas REIT Unlikely to Be Hurt by Rising Interest Rates -- Market Talk

Dow Jones2022-05-05

0528 GMT - Ascendas REIT is unlikely to be hurt by rising interest rates, CGS-CIMB analyst Lock Mun Yee says in a research note. Lock estimates that about 79% of the REIT's borrowings are based on fixed rates. These won't rise in tandem with benchmark interest-rate changes, so its distributions shouldn't be too badly affected. Ascendas said in its 1Q business update that its average leverage was 36.8% as of end-March, which leads the analyst to estimate that it has debt headroom of S$4.6 billion to make further acquisitions, assuming a 50% leverage limit. Its healthy balance sheet prompts CGS-CIMB to keep an add rating and S$3.20 target price on Ascendas, which was last at S$2.83. (yongchang.chin@wsj.com)

 

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May 05, 2022 01:28 ET (05:28 GMT)

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