With a slight improvement in fiscal 3Q10 results and a cautious outlook, industrial landlord Ascendas REIT (A17U.SG) is not giving market confidence to stay invested, says Kim Eng Securities.
“We do not expect strong rental recovery due to the new industrial space coming on line and a still-weak office sector, which may draw tenants away from industrial space,” says the brokerage, which has ‘hold’ call with $2.02 target.
OCBC Investment Research in a Nov 24 research report says: “Ascendas REIT (A-REIT) is Singapore’s first and largest business space and industrial REIT, with a portfolio of 90 properties and book value of about $4.7 billion. Its balance sheet has been strengthened after two fund raising exercises this year. A-REIT successfully lowered its gearing level to 30.5% at the end of September 2009.
Business space solutions provider Ascendas says it has received today the main license for collective investments in the Korean real-estate market.
Issued by the Korean Financial Supervisory Commission, the license enables Ascendas to conduct business in Korea as an asset management company specialised in real estate.
This is the first time that the license has been granted to a Singapore company for the asset management industry, says Ascendas.
