Ascendas REIT kept at ‘buy’ by OCBC as leverage falls

SINGAPORE (Jan 26): OCBC is maintaining its “buy” on Ascendas REIT after it recorded a healthy reduction in its aggregate leverage from 34.2% as at end Sept to 31.8%, although it expects this to increase once A-REIT completes the acquisition of 12, 14 and 16 Science Park Drive from its sponsor.

Ascendas REIT’s 3Q17 results came in line with OCBC’s expectations. Gross revenue increased 7.6% y-o-y to $208.6 million driven by inorganic growth, but partially offset by loss of income from the divestment of three assets.

(See also: Ascendas REIT reports 1.2% higher DPU for 3Q of 3.993 cents)

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