Ascendas Reit Rises On Broker Upgrades

Source : The Business Times, October 23, 2007

Shares of Ascendas Real Estate Investment Trust (A-Reit) rose as much as 5.1 per cent to $2.48 (US$1.69) with over TWO million shares traded after two foreign brokers upgraded its target price on strong second quarter results.

UBS raised the 12 month price target for A-Reit to $3.31 from $3.18 and maintained a 'buy' rating on the stock.

UBS said in a client note that A-Reit's current development projects are expected to yield between 7 and 8.5 per cent on completion within the next three years.

On Monday, Macquarie Research also raised its rating for A-Reit to 'outperform' from 'neutral' and increased the property trust's target price to $3.17 from $2.84.

Macquarie also said it expects A-Reit's distribution per unit to grow 12 per cent this year.

A-Reit reported on Friday a 15 per cent increase in revenue for the second quarter ending Sept 30 over the same period last year. The firm will pay out a distribution per unit of 3.51 Singapore cents on Nov 29. -- REUTERS