ACDSF - CapitaLand Ascendas REIT: A Mixed View

2024-04-28 07:46:03 ET

Summary

• CapitaLand Ascendas REIT's Q1 2024 business update points to a lower portfolio occupancy rate and a strong mid-teens percentage portfolio rental reversion for the recent quarter.
• The REIT is still looking for potential M&A transactions, but the "higher-for-longer" interest rate environment has affected the valuations of its properties in a negative way.
• A Hold rating for ACDSF stock is appropriate, taking into account the favorable and unfavorable read-throughs from recent disclosures.

Elevator Pitch

CapitaLand Ascendas REIT ( ACDSF ) [A17U:SP] is rated as a Hold.

My earlier November 28, 2023 update touched on the divergence in the performance of CapitaLand Ascendas REIT's different assets and the REIT's inorganic growth strategy. In this latest write-up, I draw attention to ACDSF's Q1 2024 business update, and the REIT's response to shareholders' questions in relation to this year's Annual General Meeting or AGM....

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