Ascendas REIT (AREIT SP)
Kick-starting Redevelopment Of Science Park I Soon We expect AREIT to kick-start the long-awaited redevelopment of Science Park I, starting with the TÜV SÜD PSB Building. Assuming construction costs at S$350psf, average rents
at S$5.50psf pm and occupancy rate at 95%, we estimate that the potential redevelopment could provide ROI of about 7.5%. The enhancement to 2022 distributable income is in the range of 1.5-4.6% depending on the plot ratio approved by the authorities. AREIT provides 2022 distribution yield of 5.5%. Re-iterate BUY. Target price: S$3.83.