Ascendas REIT is flat at $2.48, with its initial rise to S$2.51 evaporating despite the trust reporting its fiscal-2Q13 DPU rose 4.4% on-year to 3.53 cents, with both OCBC and Credit Suisse saying the results were slightly above their expectations.
"The strong performance was mainly due to the completion of development projects and new acquisitions," OCBC says, noting the DPU rise came despite May's private placement increasing the number of units by 7.5%; it says 1H13 DPU already forms 51.0% of its FY13 forecast. But OCBC adds, while A-REIT continues to prove its portfolio resilience, it appears fairly priced at the current level. It raises its fair value to $2.43 from $2.28 after incorporating the results and asset-enhancement-initiatives, but keeps a Hold call.
Credit Suisse has a Neutral call, raising its target to $2.29 from $2.01, partly as it cuts its cost-of-equity assumptions, expecting interest rates to stay lower longer. A-REIT's $2.51 intraday high, also tapped Wednesday, and previously last seen in August 2008 may cap any gains, while its $2.46 10-day moving average likely offers support.
No comments:
Post a Comment