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Ascendas REIT (AREIT SP)    BUY

Redevelopment Of 1 Science Park Drive

  • 1 Science Park Drive will be redeveloped into a life science and innovation campus comprising three Grade-A business park towers with column-free floor plates of more than 3,000sqm and an event plaza.
  • AREIT owns 34% in the redevelopment based on its GFA contribution. On a stabilised basis, the 34% stake provides NPI yield of 6.3% post-transaction cost and increase pro forma 2020 DPU by 0.5%.
  • Maintain BUY. Target price: S$3.83. AREIT provides 2022 distribution yield of 5.3%.