Ascendas REIT

UOBKayhian on 20 Jan 2014

FY13F DPU Yld (%): 6.6
FY14F DPU Yld (%): 7.2

Results in line with expectations. Ascendas REIT (A-REIT) reported 3QFY14 DPU of
3.54 cents/share, (-2.2% yoy, -1.7% qoq) as dilution from a private placement in Mar 13
was offset by higher distributable income (+4.9% yoy, +1.5% qoq) arising from lower
interest expenses, higher revenue, and distribution of income and income support from
ZLink Beijing. Results were in line with expectations, with 9MFY14 DPU representing
74.8% of our full-year forecast.

3QFY14 revenue rose 6.4% yoy (+1.8% qoq) to S$154m while net property income
increased 3.7% yoy (+1.4% qoq) to S$109m due to positive rental reversions (+9.7%
over previous rates), and the completion of asset enhancements and development
properties. Maintain BUY and target price of S$2.73, based on DDM (required rate of
return: 6.9%, terminal growth: 1.8%).