Check out this 'slight blip' in Ascendas REIT's robust results

It's a tad 0.3ppt slippage.

According to CIMB, with sub-market rents for expiring leases and AEIs/developments coming onstream, AREIT offers strong growth visibility. Low asset leverage, meanwhile, leaves debt headroom to pick up bargain purchases if recent measures do successfully rein in asset values.

At 26% and 77% of the firm's full-year forecast, respectively, 3Q13 and 9M13 DPU were broadly in line with consensus and estimates.

Here's more from CIMB:

We see catalysts from accretive asset enhancements, acquisitions and positive rental reversions.

AREIT saw decent results in 3QFY13 where DPU rose 4% yoy to 3.62 Scts despite a 7% increase in units in issue. This came mainly from past investments and positive rental reversions of 5.5-25.3% across its different asset types, with weighted average rental reversions of 18.5% a tad stronger than previous quarter’s 12.8%.

Occupancy slipped marginally from 94.3% to 94.0% due to lower occupancy on newly-completed AEIs but same-store occupancy remained flat. Stronger occupancy from business parks, hi-tech industrial and light industrial offset the slight blip from logistics.

Current market rents remain 24-50% higher than weighted average passing rents due for renewal in FY13/14, leaving room for positive rental reversions. More AEIs and developments are also coming onstream to boost growth.

In 3Q, AREIT made headway in leasing at recently-completed 9 Changi South St 3 and Nexus@one-north (completing in 3QCY13). Management has also announced a new S$13.2m AEI to upgrade building specifications at 31 International Business Park.

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