CapitaLand Ascendas REIT - RHB Invest 2024-10-15: Unlocking Value; BUY

• CapitaLand Ascendas REIT’s latest divestment at a hefty premium is positive and reflects hidden upside potential across its Singapore assets.
• Another near-term opportunity to unlock value in its Singapore data centre (DC) assets could arise from its top tenant SingTel (SGX:Z74) likely vacating its space upon lease expiry in the coming years.
• - Read this at SGinvestors.io -

The divestment of 21 Jalan Buroh

• The divestment of 21 Jalan Buroh, Singapore for S$113m represents a 67% premium over the latest (July) independent valuation, and translates to an exit net property income (NPI) yield (FY23) of 4%. The fully occupied property is a 3-storey ramp-up warehouse with a 7-storey ancillary office block, and has a balance 31-year land lease tenure.
• - Read this at SGinvestors.io -
• The divestment underscores potential hidden value in some of CapitaLand Ascendas REIT’s assets, with its other industrial assets in Tai Seng and the Ubi cluster possibly offering such redevelopment uplifts and opportunities in the future.

Potential to redevelop other Singapore DC assets.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2024-10-15 SGinvestors.io

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