Asked by Anonymous
Asked on 04 Jul 2019
Discuss anything about share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell this stock on the SGX Singapore markets Also, these questions just represent opinions, so before you invest, please do your own due diligence.
Ascendas Reit is Singapore’s first and largest listed business space and industrial Real Estate Investment Trust (“REIT”) with a portfolio diversified across five major segments of the business space and industrial property market.
It has 171 properties span across Singapore, Australia and UK which constitute 70%, 14% and 7% by value of the properties respectively.
With FED expecting to cut interest rate in July and MAS is considering raising the REITs current leverage limit of 45% to 50%. This have make S-REITs outperform the market and Asendas REITs is approaching it history high price.
However, do take note that Ascendas paid dividend semi annually unlike most of the other reits that pay dividend quarterly.
I had just sold Ascendas at 3.19 today for a capital gain of 22% as i feel that their price is moving up too fast into an overbought region. Shall buy back this REITs when there is a market correction which i hope that it will happen in the near term.
This is just my view and disclaimer applies.
Ascendas REIT has plenty of great things going on for it. Some of its investment merits are:
Strong historical gross revenue, net property income, and distribution per unit growth
Strong sponsor in CapitaLand Ltd (SGX: C31)
Healthy portfolio occupancy
Plenty of growth avenues
However, I’m not comfortable with the REIT’s higher-than-average PB ratio of 1.4x to put my money into it currently. You can read more on my thoughts right here.
Here's a deep dive I did on the REIT by reading 17 years of annual reports. I run through the history of the REIT, financials, operational indicators and historical trends.