Shares & Derivatives
Ascendas Reit
By Sillyinvestor  •  January 24, 2016
Ascendas results is good. Fear of dilution and hence lower DPU has proven to be unfounded. It is the operation modulus of the REIT to place shares to do yield accretive acquistions. There will be a further dilution of 65 mio shares but the Australia properties contribution will only be fully realised next quarter. So, the simple maths is the dilution is not a case of worry. However, with a new CEO, will this operation model changed? That is unknown. As my style of REIT analysis, I always go into 6 areas. Visibility of Grow drivers, impact of rate hike, occupancy rate and rental rate. Then we have valuation risk and since Ascendas is going significantly into Australia, we must account for currency risk. Grow drivers & interest rate impact: Beside the Australia properties, We also have Changi one and new Sydney properties. Changi one is ......
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By Sillyinvestor
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