$ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$
A-REIT is Singapore’s first and largest listed business space and industrial real estate investment trust. It has a diversified portfolio comprising assets in Singapore, the UK, Europe, Australia, and the US. A-REIT is managed by Ascendas Funds Management Limited.
It is attractively valued relative to other large-cap peers. A-REIT currently offers around 5.5% yield, which is among the highest compared to its other larger cap industrial S-REIT peers. Having acquired more than S$2.1bn in FY21
The reits recently reported positive rental reversion of 4.6 per cent for lease renewals in its first quarter ended Mar 31, with its portfolio occupancy standing at 92.6 per cent, down from 93.2 per cent in the last quarter.
Rental reversion for FY2022 is expected to be in the "positive low single-digit range" in view of current market uncertainties, the manager of the Reit said.
The manager also noted that 79.1 per cent of the Reit’s borrowings are on fixed rates with an average term of 3.7 years, though it warned that distribution per unit (DPU) could decline by 0.06 to 0.29 cent if interest rates went up by 20 to 100 basis points.
Occupancy in Singapore held steady at 90 per cent for the first quarter. It noted that the Reit's multi-asset portfolio in Singapore worth S$10 billion comprises properties in the business space and life sciences, logistics, and industrial and data centres segments, allowing it "to serve a wide range of customers" across industries.
In addition, the recent completion of several asset enhancement initiatives and redevelopment as part of the Reit’s asset rejuvenation plan are expected to generate higher returns for it, the Reit manager added.
I will continue to hold my position and DCA on my Reits fund to build my retirement portfolio.
What are your thoughts?
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