To The Moon

$ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$

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, A-REIT is on track to deliver DPU growth of 4.5% in FY22.

The reits also proactive rejuvenation of its portfolio to add value to older properties and tap on unutilised plot ratioss will create a further upside to earnings.

Unlocking value from rejuvenation of its Science Park assets. While A-REIT can tap its Sponsor for an attractive pipeline of new economy properties, there is significant value from the potential redevelopment of its Science Park assets. The redevelopment of 1 Science Park Drive together with its Sponsor paves the way for c.S$5.6bn in gross development value to be unlocked from its assets at Science Parks 1 and 2.

However, with interest rate going up lending rates will negatively impact dividend distributions. But at some point everything will strike a balance.

In Feb22, A-REIT reported a very strong set of results for FY21, owing to its ongoing value addition strategy to acquire new economy assets and reposition older properties.

I will continue to hold my position and DCA on my Reits fund to build my retirement portfolio.[smile] [smile] @TigerStars