0340 GMT - Ascendas REIT's leasing and occupancy trends look strong, based on its 1H results, says Daiwa Capital Markets analyst David Lum, as the brokerage raises its target price to S$3.11 from S$3.05 with an unchanged outperform rating. The REIT unveiled encouraging and bullish trends in occupancy rates and rental reversions in its results, and management has upgraded its 2022 rental reversion guidance to positive mid-single-digit range from low-single-digit range, the analyst notes. The REIT's upbeat portfolio indicators are encouraging, but they become nearly meaningless if they aren't transmitted to DPU growth over next 12 months, the analyst adds. There are likely transmission headwinds from rising utility expenses and higher borrowing costs, he says. The units are unchanged at S$2.97. (ronnie.harui@wsj.com)
$(END)$ Dow Jones Newswires
August 11, 2022 23:40 ET (03:40 GMT)
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