Ascendas Reit Dividend Yield Share Price Analysis

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Brief introduction

Interested in investing in something other than Capitaland’s Reit, like Capitaland Commercial Trust? Beginners interested in learning how to invest money in Singapore can look at Ascendas Real Estate Investment Trust (A-REIT). A-REIT is the largest business spaces and industrial real estate investment trust, with assets of around SGD 11.4 B in Singapore, Australia and United Kingdom.

Ascendas Reit is managed by Ascendas Funds Management, an indirect wholly-owned subsidiary of Capitaland Limited, which owns 19% of Ascendas Reits’ outstanding units.

Please see below for the historic share price of AREIT.

History of AREIT

A-REIT was first listed in 2002, with a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties (the “Properties”), with an aggregate Net Lettable Area (as at 30 June 2002) of approximately 245,179 sq m. As of 30 June 2002, the Properties had an average occupancy rate of approximately 84.6%. At that point in time, total assets was 636 million.

Fastforward to present

A-REIT was first listed in 2002, with a diversified portfolio of eight properties comprising business park (including science park), light industrial and built-to-suit properties (the “Properties”), with an aggregate Net Lettable Area (as at 30 June 2002) of approximately 245,179 sq m. As of 30 June 2002, the Properties had an average occupancy rate of approximately 84.6%. At that point in time, total assets was 636 million.

Ascendas Reit Vision and Goal

Ascendas Reit’s vision is to be a leading real estate investment trust that delivers predictable distributions and achieve long term capital stability for unitholders. What this means is that Ascendas Reit will be focussed on achieving stable distribution and will be looking at dpu accretive acquisitions that can create additional value for its unit holders. These two are somewhat similar but not entirely the same. To achieve stable distribution often takes the form of getting high quality tenants, achieving high occupancy and a proactive lease management. Creating additional value requires that Ascendas reit purchase new investments at an attractive hurdle rate. Further, these acquisitions must be financed in a manner that is distribution accretive to the unitholders.