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.
Here are some key financial numbers from the REIT’s fiscal first-half earnings (six months ended 30 June 2020):
Gross revenue: Up 14.6% year-on-year (YoY)
Net property income: Up 11.2% YoY
Distribution per unit: Down 10.8% YoY to 7.270 Singapore cents
Portfolio occupancy: 91.5%
William Tay, chief executive of Ascendas REIT’s manager, said:
“In the first half of 2020, Ascendas Reit managed to deliver a steady distributable income despite the difficult operating environment, the provision of rent waivers to our tenants due to the COVID-19 pandemic and the absence of one-off distribution of rollover adjustments. With the enlarged number of Units in issue, DPU declined to 7.270 cents.
We continue to expect challenges in the months ahead which could impact the performance of Ascendas Reit. However, our well-diversified portfolio and tenant base should help us to mitigate the challenges ahead. We will continue to work closely with our tenants to ride out this uncertain period together.”
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.