CapitaLand Ascendas REIT's diversified portfolio is likely generating steady growth, UOB Kay Hian's Jonathan Koh says in a research report as the brokerage maintains the REIT's buy rating.

Management intends to recycle assets in Singapore and reposition toward technology, logistics and biomedical science properties, the analyst notes. Also, the REIT is redeveloping assets in the U.S., U.K. and Singapore, and planning to expand its logistics portfolio in the U.S. to leverage on onshoring and reshoring trends, the analyst says.

However, the brokerage trims its distribution-per-unit forecast for the REIT by 4% for 2025 and 1% for 2026 as interest rates still remain elevated. It lowers the target price to S$3.51 from S$3.74. Units are 0.8% lower at S$2.62.