SINGAPORE (Jan 6): RHB Research has reiterated its “buy” recommendation for Ascendas REIT, describing it as its top pick in the industrial sector.

RHB’s analyst Vijay Natarajan gives four reasons for his choice.

Recent acquisitions are not just DPU-accretive
AREIT’s acquisition of two science parks from sponsor Ascendas Land were favourable to the group given the long underlying weighted average lease expiry (WALE) periods of 16.5 years and their triple net-leases with in-built rental escalations of 2.2% to 2.5% per annum. It also increased the group’s exposure to the promising business park segment, according to Natarajan.

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