CapitaLand Ascendas REIT Likely Has Multiple Earnings Drivers in Coming Quarters
Dow Jones
Aug 06
0804 GMT - CapitaLand Ascendas REIT likely has multiple earnings drivers to support growth in the quarters ahead, says DBS Group Research's Dale Lai in a note. While reported portfolio occupancy in 1H softened marginally due to some recently completed assets, overall occupancy would have remained largely stable excluding these additions, he says. Income contribution from completed redevelopment projects are likely to progressively ramp up through 2H and 2027, the analyst says. Any earnings dilution from planned assets sales should be more than offset by strong rent increases and full-period earnings contribution from recent acquisitions, he adds. DBS maintains its buy rating and 3.20 Singapore dollar target price. Units fall 1.6% to S$2.53.
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