CapitaLand Ascendas REIT - UOB Kay Hian 2023-05-17: Growing Through 3 Initiatives While Preserving Resiliency Of Balance Sheet

CapitaLand Ascendas REIT - Growing Through 3 Initiatives While Preserving Resiliency Of Balance Sheet

Published:
CapitaLand Ascendas REIT (SGX:A17U) | SGinvestors.ioCapitaLand Ascendas REIT (SGX:A17U)
  • The Shugart at one-north district provides attractive NPI yield of 8.3% (7.8% post-transaction costs). The development of a six storey high-specification ramp-up logistics facility in Singapore provides attractive stabilised yield of 7.5-8.5%.
  • Including the potential acquisition in Europe, the basket of 3 initiatives provides DPU accretion of 1.2-1.3%.
  • - Read this at SGinvestors.io -

Acquiring Seagate’s R&D facility.

  • CapitaLand Ascendas REIT (SGX:A17U) has proposed to acquire The Shugart, a high-specification R&D and business park property at 26 Ayer Rajah Crescent in the one-north district from Seagate Singapore, who will lease back the property for 10 years and has an option to extend for an additional 10 years. The lease has built-in rent escalation of 2.5% per year.
  • - Read this at SGinvestors.io -
  • The proposed acquisition provides attractive NPI yield of 8.3% (7.8% post-transaction costs). It is accretive to pro forma 2022 DPU by 0.11 cents or 0.7% assuming:
    1. funding structure of equity 60% and debt 40%, and
    2. REIT manager receives base fees 80% in cash and 20% in new units.
  • The acquisition is expected to complete in 2Q23.

Potential acquisition in Europe.

  • Read more at SGinvestors.io.




Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.




Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-05-17



Read also UOB's most recent report:
2024-02-05 CapitaLand Ascendas REIT - Continues To Generate Strong Positive Rental Reversions In 2H23.

Previous report by UOB:
2023-11-02 CapitaLand Ascendas REIT - 3Q23 In Line.

Price targets by 4 other brokers at CapitaLand Ascendas REIT Target Prices.

Listing of research reports at CapitaLand Ascendas REIT Analyst Reports.

Relevant links:
CapitaLand Ascendas REIT Share Price History,
CapitaLand Ascendas REIT Announcements,
CapitaLand Ascendas REIT Dividends & Corporate Actions,
CapitaLand Ascendas REIT News Articles





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