Why Ascendas REIT is making all the right moves for analysts

It ditched China for Singapore and Australia.

For the past quarter, Ascendas REIT reported a 1.2% higher DPU to 3.99 Singapore cents. CIMB said this favourable effect was partly due to the provision of $8.4m performance fees in the same quarter last year, partially offset by the higher interest expense in the period.

More to that, CIMB said Ascendas REIT has been making all the right moves lately, with its exit in China and deepening of presence in Singapore and Australia.

"In particular, the three science park buildings (in Singapore) offer long WALEs and low tenancy risks. Lastly, AREIT has deepened its reach in Australia with the acquisition of its first business park in the country for S$149m in Sep 16. It is also redeveloping two projects (20 Tuas Ave 1 and 50 Kallang Ave) and one AEI worth a total of $114.3m," CIMB said.