Steady 4Q Results; Now Looking for Acquisitions

Mapletree Industrial Trust - High-Tech Industrial Properties Driving Growth

AREIT Placement - Expected to Be DPU Accretive but the Acquisition Might Take a While

Singapore REITs analyst, 13 years experience

Nupur Joshi, CFA

Equity Bottom-Up

CapitaLand Ascendas REIT / Equity Bottom-Up

Ascendas Real Estate Investment Trust ("AREIT") is Singapore’s largest listed business space and industrial REIT and the third largest industrial REIT by market cap in Asia ex-Japan. They have a track record of steady growth in revenue, NPI (net property income) and DPU (distribution per unit). DPU grew by 4%, 3% and 5% in FY13/14, FY14/15 and FY15/16 respectively.Their portfolio has demonstrated resilience by achieving positive rental reversions and high occupancy in the face of a weak industrial property market in Singapore.Their gearing is at a comfortable 32%, which gives them the ability to make acquisitions of S$1-2 billion. Their expansion into Australia provides them with a large market to acquire good quality assets at attractive yields.All the convertible exchangeable bonds issued in 2010 have now been converted (last tranche converted in February 2017). This will reduce the growth of total units outstanding and boost DPU growth.

Ascendas Real Estate Investment Trust ("AREIT") is Singapore’s largest listed business space and industrial REIT and the third largest industrial REIT by market cap in Asia ex-Japan. They have a track record of steady growth in revenue, NPI (net property income) and DPU (distribution per unit). DPU grew by 4%, 3% and 5% in FY13/14, FY14/15 and FY15/16 respectively.Their portfolio has demonstrated resilience by achieving positive rental reversions and high occupancy in the face of a weak industrial property market in Singapore.Their gearing is at a comfortable 32%, which gives them the ability to make acquisitions of S$1-2 billion. Their expansion into Australia provides them with a large market to acquire good quality assets at attractive yields.All the convertible exchangeable bonds issued in 2010 have now been converted (last tranche converted in February 2017). This will reduce the growth of total units outstanding and boost DPU growth.

AREIT：買収と成長に向けて好位置に