0254 GMT - CapitaLand Ascendas Real Estate Investment Trust's latest acquisitions are likely to help increase its distributions, says Morningstar's Xavier Lee in a note. The REIT is buying one Singapore logistics asset, a 50% interest in a Singapore business-space property and a 49% stake in a Japanese data center for S$1.4 billion. These purchases are likely to increase distributions per unit by 2.1%, the analyst says. Meanwhile, the price of the REIT's preferential offering--part of its plan to raise around S$900 million in equity--represents a 20%-22% discount to Morningstar's valuation, says Lee. The units currently appear undervalued and offer attractive 2026 distribution yield of 6.3%, he adds. Morningstar raises its fair-value estimate by 3.4% to S$3.00. Units fall 0.4% to S$2.50. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
March 25, 2026 22:54 ET (02:54 GMT)
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