UOB Kay Hian analyst Jonathan Koh has maintained their bullish stance on ACDSF stock, giving a Buy rating on February 7.
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Jonathan Koh has given his Buy rating due to a combination of factors influencing CapitaLand Ascendas REIT’s performance. Firstly, the REIT continues to achieve strong rental reversions, with an average increase of 8.6% in the fourth quarter of 2024 across its key markets, reflecting robust demand and effective property management. This positive trend is expected to continue into 2025, further enhancing revenue streams.
Additionally, CapitaLand Ascendas REIT has managed to maintain high occupancy rates in its portfolio, with notable improvements in regions such as the US, where occupancy rose by 1.8 percentage points quarter-on-quarter. The REIT’s strategic redevelopment projects, including data centers and logistic properties, are likely to contribute to long-term growth. Despite slight revenue declines due to property divestments, the REIT’s net property income and distributable income have grown, supported by decreased finance costs and improved operational efficiencies, justifying the optimistic outlook.
Koh covers the Real Estate sector, focusing on stocks such as Mapletree Logistics, Frasers Logistics & Commercial Trust, and Keppel REIT. According to TipRanks, Koh has an average return of 1.9% and a 47.50% success rate on recommended stocks.
In another report released on February 7, DBS also maintained a Buy rating on the stock with a S$3.20 price target.