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Trust in its recovery
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Joelton
Supreme |
10-Mar-2022 09:04
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Ascott Trust acquires 5 longer-stay lodging assets in Japan for $125 million
Ascott Residence Trust (ART) is acquiring four rental housing properties and a student accommodation property in Japan for a total investment of 10.4 billion yen (S$125 million).
In an announcement on Wednesday (March 9), the stapled group' s managers said they expect the latest acquisitions to be yield accretive, increasing ART' s pro forma financial year 2021 distribution per stapled security (DPSS) by 1.7 per cent with an average net operating income yield of about 4 per cent.
These properties will be acquired on a turnkey basis from two different sellers, and the transactions are expected to complete between the first quarter of this year and the second quarter of next year.
Out of the four rental housing properties, three are in Central Osaka and offer 120, 70 and 108 studio units respectively. They are each located within walking distance of Osaka' s public transportation network and will be managed by third-party operators when they open.
The remaining rental housing property is in Hakata, Fukuoka, and offers 247 units through a mix of studio and one-bedroom apartments with waterfront views. It will be managed by a third-party operator upon opening.
ART' s managers said it expects this property to perform well, given increasing rental rates in the city and expectations for supply to remain low in the next few years.
Acquiring the four properties will also boost the overall resilience of ART' s portfolio, they added, as leases for the assets are about two years in length and will therefore provide better visibility and stability in future cash flows.
Meanwhile, the student accommodation property acquisition is a first for ART in Japan. Located in Osaka and a 15-minute walk to the Nagase railway station, it serves as the main campus of Kindai University and offers 112 studio apartments. The property is under a 15-year master lease with a fixed monthly rent.
With the latest transaction, ART' s longer-stay properties are now expected to contribute 17 per cent to the stapled group' s gross profit, up from 15 per cent in financial year 2021.
It brings ART' s portfolio of rental housing and student accommodation properties to 19 properties across five cities in Japan, with a total of 2,500 units. The stapled group also has eight serviced residences and hotels across Tokyo, Kyoto and Osaka, to collectively offer 2,600 units.
The managers say ART remains on-track to meet its medium-term target of 25 per cent to 30 per cent for its longer-stay properties, which will strengthen the resilience of the stapled group' s portfolio.
Ms Beh Siew Kim, chief executive of the managers, highlighted that as the five properties will be acquired on a turnkey basis, there is no development risk.
" Minimal down payment is required, and majority of the payment will be made upon completion of the transactions," she said.
ART is a stapled group comprising Ascott Real Estate Investment Trust (Ascott Reit) and Ascott Business Trust (Ascott BT).
Its managers comprise Ascott Reit' s manager and the trustee-manger of Ascott BT, both of which are wholly owned subsidiaries of CapitaLand Investment.
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Joelton
Supreme |
04-Feb-2022 10:00
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Ascott buys US student accommodation asset via US$150m joint venture
CAPITALAND Investment Limited' s (CLI) CapitaLandInvest: 9CI +0.87% wholly-owned lodging business unit, The Ascott Limited, is acquiring a freehold student accommodation asset in Nebraska, US, through a joint venture with total US$150 million in committed equity between Ascott and Riyad Capital.
The new joint venture is named the Student Accommodation Development Venture (Save) and will develop student accommodation assets in the US, said CLI in a bourse filing on Thursday (Feb 3).
Ascott will manage the joint venture and hold a 20 per cent stake in it, while the remaining stake will be held by Riyad Capital, one of the largest institutional capital partners in the Middle East. Riyad Capital is also an existing partner from Ascott' s network of lodging property owners.
When fully deployed, the venture will boost Ascott' s funds under management (FUM) by US$375 million.
The purchase of the freehold student accommodation property in Lincoln, Nebraska is Save' s first investment. Currently under construction, the 779-bed Class A asset will serve over 25,000 undergraduate and graduate students from the nearby University of Nebraska-Lincoln and is slated for completion by August 2023.
With this newest acquisition, Ascott has invested about US$648.9 million to build a " diversified and quality" portfolio of 9 student accommodation assets in a year via its funds and its sponsored trust, Ascott Residence Trust (ART), said CLI.
Seven of the 9 student accommodation assets are operational. The student accommodation assets are located predominantly in the US' s Sunbelt states, Ivy League and " Power 5" athletics conference markets, and situated near their respective key educational institutions. With over 5,100 beds, the assets will serve over 295,000 students, added CLI.
Kevin Goh, CLI' s chief executive officer for lodging, said: " Student accommodation assets, with their counter-cyclical qualities, provide income resilience to our investors. Our well-located assets have performed well, with operating assets enjoying a strong average occupancy rate of close to 100 per cent."
He added: " We remain confident in the segment and look to invest through platforms such as Save to create value for our capital partners by leveraging Ascott' s expertise and network to identify under-supplied student accommodation markets that are close to good universities."
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john_ric
Supreme |
30-Jan-2022 13:04
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As a precaution, it' s counterpart cdl is not doing so well. CDL Hospitality Trusts cuts H2 DPS by 11% to S$0.0306 CDL Hospitality Trusts' (CDLHT) distribution per stapled security (DPS) fell by 11 per cent to 3.06 Singapore cents for its second half ended Dec 31, 2021, from 3.44 cents a year ago. |
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john_ric
Supreme |
30-Jan-2022 12:59
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0.97 can collect for dividend. still cd.
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PhillipTan
Supreme |
30-Jan-2022 04:14
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Maybe 0.97
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john_ric
Supreme |
29-Jan-2022 16:36
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heading for 0.99? |
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Joelton
Supreme |
29-Jan-2022 12:36
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Ascott Residence Trust posts 14.1% rise in H2 DPS sets new target to grow longer stay assets
SEEING how strongly the demand for longer stay assets had held up across the pandemic, Ascott Residence Trust (ART) Ascott Trust: HMN -1.94% is now intent on growing this segment to 25 to 30 per cent of its total portfolio value in the next 3 to 5 years.
This strategy will help guard the hospitality real estate investment trust (Reit) against future &ldquo black swan&rdquo events, Beh Siew Kim, chief executive officer of ART&rsquo s managers, said in a call with reporters and analysts to discuss the Reit&rsquo s financial results on Friday (Jan 28).
&ldquo (Longer stay assets) will be an important part of (ART&rsquo s) portfolio so that if another black swan event comes, we know that we have this source of income that we will be able to build the base for our unitholders,&rdquo Beh said.
The new target comes as the CapitaLand subsidiary hit its previous asset allocation target for longer stay assets &ndash 15 to 20 per cent &ndash with a spree of 11 rental housing and student accommodation acquisitions totalling S$780 million since January last year.
Longer stay assets now make up 16 per cent of its portfolio value. The figure stood at 5 per cent as at Dec 31, 2020, before the acquisitions, which were concentrated in the United States and Japan.
Asked if its current capital structure can digest the pivot to longer stay assets, Beh noted ART&rsquo s gearing of 37.1 per cent, which translates to about S$1.9 billion in debt headroom given the Monetary Authority of Singapore&rsquo s 50 per cent gearing threshold.
On top of that, ART, which is a stapled group comprising Ascott Real Estate Investment Trust and Ascott Business Trust, is &ldquo actively recycling&rdquo some of its assets to generate new proceeds through divestments, she said.
So far, the Reit had managed to recycle its assets at higher yields, the Reit managers&rsquo head of investment and asset management Gerry Chan stated. Its divestments in 2020 and 2021 generated exit yields of about 2 per cent, and the proceeds were reinvested at earnings before interest, taxes, depreciation, and amortisation (Ebitda) yields of 5 per cent, he said.
For the second-half ended Dec 31, 2021, ART reported a 14.1 per cent increase in its distribution per stapled security (DPS) to 2.27 Singapore cents, from 1.99 cents a year ago.
Its portfolio revenue per available unit (RevPAU) was up 61.2 per cent to S$79 for H2 2021, from S$49 in H2 2020.
In a sign that the pace of reopening has hastened, its RevPAU in the fourth quarter of 2021 alone came in at S$87. This marked the strongest quarter-on-quarter increase in RevPAU since the second quarter of 2020, its managers said in a press statement.
Revenue was up 29.7 per cent to S$209.4 million for H2 2021, from S$161.4 million a year ago.
Its managers attributed the growth mainly to higher revenue of S$45.4 million from its existing portfolio and additional contributions of S$11.7 million from the acquisition of 6 student accommodation assets in the US and 3 rental housing properties in Japan.
They noted, however, that these gains were partially offset by a decrease in revenue of S$9.1 million from divestments.
Gross profit was also up 49.5 per cent to S$91.2 million for H2 2021, from S$61 million a year ago.
Distribution income grew 19.1 per cent on the year to S$73.5 million for the half year, from S$61.7 million. This included a one-off distribution of divestment gain of S$25 million to share divestment gains with stapled securityholders, replace income loss from divested assets, and mitigate the impact of Covid-19 on distributions.
Meanwhile, for the full year ended Dec 31, 2021, DPS was higher at 4.32 cents, versus 3.03 cents a year ago, as RevPAU rose 16.9 per cent to S$69, from S$59 in FY2020.
Stressing that the full-year DPS increase was &ldquo very commendable&rdquo given the Covid-19 situation, Beh said: &ldquo For a hospitality Reit, for us to distribute 4 (over) cents despite the lack of international travel in many parts of the world, it shows that we have done well and making sure that assets continue to deliver returns to our investors.&rdquo
&ldquo It is a testament to how we have recycled well, invested well, and realised gains that can be distributed to our unitholders during a period like this,&rdquo she added, stating that the Reit still has about S$300 million in undistributed capital gains.
Gross revenue for FY2021 was 6.6 per cent higher at S$394.4 million, while gross profit rose 15.8 per cent to S$173.3 million for the full year.
Total distribution income in FY2021 rose by 45.7 per cent to S$137.3 million, which included the termination fee income received upon terminating the sale of Citadines Xinghai Suzhou and Citadines Zhuankou Wuhan.
The full-year distribution income of S$137.3 million also comprised realised exchange gains on the receipt of the divestment proceeds, realised exchange gains from the repayment of foreign currency bank loans with the divestment proceeds, on top of the one-off distribution of divestment gain of S$45 million.
ART will pay a distribution of 1.726 cents per stapled security for the Sep 20 to Dec 31, 2021 period come Mar 1, after books close on Feb 9.
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Lobster
Elite |
28-Jan-2022 09:19
Yells: "Even Adam Khoo believes in the Black Market!" |
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If you must ask... DPU for this 2H21 is $0.02271 vs $0.0199 in 2H20, up 14 % but if you are wondering why we will be getting only $0.01726, it' s because the company paid an advance of $0.00545 in 9 November 2021.... |
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Joelton
Supreme |
28-Jan-2022 09:08
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Ascott Residence Trust reports 2HFY2021 DPS of 2.27 cents, up 14% on one-off divestment gain
The manager of Ascott Residence Trust (ART) has reported a distribution per stapled security (DPS) of 2.27 cents for the 2HFY2021, up 14% y-o-y. This brings DPS for the FY2021 to 4.32 cents, up 43% y-o-y.
Excluding the divestment gains distributed in both FY2021 and FY2020, ART&rsquo s DPS was up 85% y-o-y.
Distribution income for the 2HFY2021 rose 19% y-o-y to $73.5 million, which includes a one-off divestment gain of $25.0 million to share divestment gains with the REIT&rsquo s stapled securityholders. The move was also made to replace income loss from divestment assets and mitigate the impact of Covid-19, says ART in a Jan 28 statement.
2HFY2021 gross revenue rose 30% y-o-y to $209.4 million due to the higher revenue of $45.4 million from the existing portfolio, as well as additional contribution of $11.7 million from the acquisition of six student accommodation properties in the US and three rental housing properties in Japan.
The higher amount was offset by a decrease in revenue of $9.1 million from the divestments of several properties including Ascott Guangzhou and Citadines Didot Montparnasse.
In the 2HFY2021, ART achieved a revenue per average unit (revPAU) of $79, up 61% y-o-y higher occupancy and average daily rate. In the 4QFY2021, ART&rsquo s revPAU surged 24% q-o-q to $87, its highest q-o-q increase so far, on the back of the faster pace of reopening.
During the period, ART&rsquo s long-stay properties continued to provide income stability, while the easing of travel restrictions and increased global economic activities led to a hike in demand from both corporate and leisure guests. ART&rsquo s key markets &ndash the US, UK and Australia &ndash saw the strongest growth.
2HFY2021 gross profit rose 49% y-o-y to $91.2 million from properties on master leases, properties on management contracts with minimum guaranteed income and properties on management contracts.
As at end-December, cash and cash equivalents stood at $346.3 million.
Bob Tan, chairman of the managers says, &ldquo Through our active portfolio management, we have enhanced ART&rsquo s income stability by building its longer-stay assets and further diversifying its portfolio. In the past year, ART invested $780 million in 11 yield-accretive rental housing and student accommodation assets at an average EBITDA yield of about 5%.&rdquo
&ldquo We have successfully replaced the distribution income from our divested assets at higher yields. In FY 2020 and 2021, ART divested six assets at an average exit yield of around 2% and received about S$580 million in proceeds. Our longer-stay assets currently make up about 16% of our total portfolio value,&rdquo he adds. &ldquo We will raise the asset allocation target in these longer-stay assets from 15-20% in the medium term to 25-30%, further strengthening the resilience of ART&rsquo s portfolio.&rdquo
Beh Siew Kim, CEO of the managers says the REIT will &ldquo continue to seek more yield-accretive investments while remaining committed to sustainability and taking a disciplined approach in managing our capital and costs.&rdquo
&ldquo Economic growth is expected to be modest in the near term, given the mobility restrictions in light of the Omicron variant and tightening of monetary policies to curb inflationary pressures. ART&rsquo s presence in large domestic markets will allow us to continue capturing the strong local demand in the interim,&rdquo she adds, citing that travel is covering in many markets amid the rising vaccination rates.
&ldquo The coordinated lifting of travel restrictions and governments&rsquo commitment to the reopening of international borders, could further help to restore confidence in travel and accelerate recovery in 2022. With ART&rsquo s geographically diversified portfolio, we are well-positioned to capture demand as international travel gradually returns,&rdquo she continues.
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Lobster
Elite |
10-Jan-2022 16:36
Yells: "Even Adam Khoo believes in the Black Market!" |
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I expect it to be back to at least $0.035 cents, thus doubling the total dpus last year. |
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Joelton
Supreme |
10-Jan-2022 09:04
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Ascott sees record growth in units for fifth straight year in 2021 despite Covid-19 headwinds
The Ascott Limited has secured 15,100 units across 72 properties globally in 2021, marking the fifth straight year that it has seen record growth in units despite Covid-19.
Of the 15,100 units, 60% of the new signings were serviced residences. The new units also see the company expanding its footprint in China and Vietnam, in addition to entering the markets of Cameroon and Nigeria.
The Ascott Limited is CapitaLand Investment&rsquo s (CLI) wholly-owned lodging business unit.
Ascott also closed 2021 with its highest-ever property openings, with over 8,200 units launched in 40 properties across 10 countries. This is more than double the units opened in 2020.
The properties opened include Ascott&rsquo s first Adoor-branded rental housing property, Adoor Apartment Heda Hangzhou (Xiasha) and its first lyf-branded coliving property, lyf MidTown Hangzhou, in China.
In December 2021, Ascott clinched several awards at the World Travel Awards 2021, Travel Weekly Asia 2021 Readers&rsquo Choice Awards and the Business Traveller Awards 2021, including the title of &ldquo World&rsquo s Leading Serviced Apartment Brand&rdquo at the World Travel Awards.
&ldquo In 2021, Ascott continued with our strong growth trajectory despite Covid-19. Our record signings for the fifth consecutive year anchors Ascott&rsquo s market leading position as an international lodging operator. More than 80% of the new units secured in 2021 were under management and franchise contracts, in line with Ascott&rsquo s asset-light growth strategy,&rdquo says Kevin Goh, CLI&rsquo s CEO for Lodging.
&ldquo We also opened a record number of units in 2021, readying ourselves for the recovery of travel in 2022. The newly signed and opened properties will be a welcome boost to our recurring fee income, as we build on this momentum to meet our target of 160,000 units globally by 2023,&rdquo he adds.
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Joelton
Supreme |
28-Dec-2021 09:14
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Ascott Residence Trust doubles student accommodation assets with $290m purchase
Ascott Residence Trust (ART) will acquire four student accommodation assets with a total of 1,651 beds in the United States for US$213 million (S$289.5 million), managers of the stapled group announced on Monday (Dec 27).
Ascott Residence Trust Management and Ascott Business Trust Management pointed out that the yield-accretive acquisition, which will double ART' s student accommodation assets, is set to increase the hospitality trust' s pro forma financial year 2020 distribution per stapled security by about 3 per cent.
The earnings before interest, tax, depreciation and amortisation (Ebitda) yield is expected to be about 4.9 per cent, they added.
The four mostly freehold assets are Link University City in Pennsylvania, Latitude on Hillsborough and Uncommon Wilmington in North Carolina and Latitude at Kent in Ohio. They serve more than 100,000 students across five universities in three US states.
The acquisition will be 92 per cent funded by debt and 8 per cent funded by the remaining proceeds from ART' s private placement launched in September.
When completed, the managers said ART would have built a " diversified and quality portfolio" of eight student accommodation assets with about 4,400 beds in under a year.
Of the eight - which are predominantly in US' Sunbelt states, Ivy League and " Power 5" athletics conference markets - seven are operating assets that are contributing stable income and new with an average age of two years, while one is under development.
The managers added that portfolio concentration risk would be reduced now that the assets are spread across seven states, with each state accounting for less than 23 per cent of total beds.
Ms Beh Siew Kim, chief executive of the trust' s managers, said ART had invested more into the sector given the favourable conditions of the overall student accommodation market in the US.
She added that ART' s student accommodation assets in the US have proven to be resilient throughout the Covid-19 pandemic.
Ms Beh then gave an update of ART' s overall portfolio, pointing out that student accommodation assets and rental housing properties now make up about 16 per cent of ART' s total portfolio value, surpassing its initial target of 15 per cent.
" We remain on track to grow this longer-stay portfolio to 20 per cent in the medium term, building a sizeable stable income base," she said.
ART had divested five assets for about $501 million at an average exit yield of around 2 per cent in FY2020 and FY2021 to date, she added.
Mr Beh also pointed out that this year, ART invested a total of about $780 million in eight student accommodation assets and three rental housing properties at an average Ebitda yield of about 5 per cent, replacing the distributable income from ART' s divested assets at higher yields.
Upon completion of the latest acquisition, ART' s gearing will be at 37.8 per cent, if figures from the unaudited financial statements of the trust as at Sept 30, 2021, were used, she added.
With this, she said: " ART remains in a strong financial position to seek further yield-accretive investments and generate long-term value for our stapled securityholders."
Ascott Residence Trust Management and Ascott Business Trust Management are wholly owned subsidiaries of CapitaLand Investment.
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PhillipTan
Supreme |
28-Dec-2021 00:29
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Ascott Residence Trust doubles student accommodation assets with US$213m acquisitionASCOTT Residence Trust (ART) will acquire four student accommodation assets with a total of 1,651 beds in the United States for US$213 million (S$291.2 million), managers of the stapled group announced on Monday (Dec 27).In a press statement, Ascott Residence Trust Management and Ascott Business Trust Management pointed out that the yield-accretive acquisition, which will double ART' s student accommodation assets, is set to increase the hospitality trust' s pro forma FY2020 distribution per stapled security by about 3.0 per cent. The earnings before interest, tax, depreciation and amortisation (EBITDA) yield is expected to be about 4.9 per cent, they added. The four assets - which are predominantly freehold - are Link University City, in Pennsylvania Latitude on Hillsborough and Uncommon Wilmington, which are in North Carolina and Latitude at Kent, in Ohio. They serve more than 100,000 students across five universities in three US states. The managers, meanwhile, disclosed that the acquisition will be 92 per cent funded by debt and 8 per cent funded by the remaining proceeds from ART' s private placement launched in September. The purchase is expected to be completed in phases from the end of this month. When completed, the managers said ART would have built a " diversified and quality portfolio" of 8 student accommodation assets with about 4,400 beds in under a year. Of the 8 - which are predominantly in US' Sunbelt states, Ivy League and ' Power 5' athletics conference markets - 7 are operating assets that are contributing stable income and are new with an average age of 2 years, while 1 is under development. The managers added that portfolio concentration risk would be reduced now that the assets are spread across 7 states, with each state accounting for less than 23 per cent of total beds. Beh Siew Kim, chief executive officer of the trust' s managers, said ART had invested more into the sector given the favourable conditions of the overall student accommodation market in the US. She added that ART' s student accommodation assets in the USA have proven to be resilient throughout the Covid-19 pandemic. Beh then gave an update of ART' s overall portfolio, pointing out that student accommodation assets and rental housing properties now make up about 16 per cent of ART' s total portfolio value, surpassing their initial target of 15 per cent. " We remain on track to grow this longer-stay portfolio to 20 per cent in the medium term, building a sizeable stable income base," she said. ART had divested five assets for about S$501 million at an average exit yield of around 2 per cent in FY2020 and FY2021 to date, she added. Beh also pointed out that this year, ART invested a total of about S$780 million in 8 student accommodation assets and 3 rental housing properties at an average EBITDA yield of about 5 per cent, replacing the distributable income from ART' s divested assets at higher yields. Upon completion of the acquisition of the 4 new student accommodation assets, ART' s gearing will be at 37.8 per cent, if figures from the unaudited financial statements of the trust as at Sept 30, 2021 were used, she added. With this, she said: " ART remains in a strong financial position to seek further yield-accretive investments and generate long-term value for our stapled securityholders." Ascott Residence Trust Management and Ascott Business Trust Management are wholly owned subsidiaries of CapitaLand Investment. |
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Lobster
Elite |
24-Dec-2021 12:43
Yells: "Even Adam Khoo believes in the Black Market!" |
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PhillipTan
Supreme |
15-Dec-2021 16:42
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DBS ups Ascott Residence Trust' s TP to $1.30 on faith in large domestic travel marketsDBS Group Research analysts Geraldine Wong and Derek Tan are remaining positive on Ascott Residence Trust (ART) with a " buy" call as they see large domestic travel markets sustaining the trust.Amid the news of the new Covid-19 variant, the analysts believe " large domestic travel markets continue to be well-sheltered from the faltering developments on border reopening" . In addition, the analysts have upped their target price estimate on the counter to $1.30 from $1.20 previously. The higher target price comes as Wong and Tan estimate a softer earnings recovery trajectory to around 70% of normalised levels in FY2022, as well as a $300 million acquisition assumption for the year. In their report on Dec 6, the analysts see ART trading at a compelling value, with the counter currently trading below book at 0.9 times price-to-net asset value (P/NAV) and on attractive 5.6% forward FY2022 yields. On this, they peg a 43% y-o-y distribution per unit (DPU) growth and " on more resilient income stream from longer-stay lodging assets" . In the same report, Wong and Tan say they see a softer trajectory to normalisation for the resumption of travel as well as the recovery for hotel sectors from an islandwide revenue per average room (RevPAR) at 50% of 2019 levels for FY2021. " With border reopening delayed from the Omicron variant development, ART' s 73% exposure to large domestic travel markets will continue to serve as an earnings buffer as domestic lodging demand will still be the most stable income stream for now," write the analysts. " Moreover, maiden acquisitions within the student accommodation space and longer-lodging asset segment have fuelled inorganic growth of ART' s stable income contributions this year, en-route to ART' s long-term target of a 15-20% portfolio exposure in this space," they add. Wong and Tan are also positive on ART' s asset recycling to drive upside in earnings and its net asset value (NAV). " [A] healthy 35% gearing level and $2 billion debt headroom could mean that long-awaited acquisition of sponsor' s $1 billion US multifamily portfolio may be considered in 2022," they write. That said, one of the key risks to ART' s share price, is the ongoing Omicron variant, which may cause a longer-than-expected delay to the reopening of global borders. |
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Joelton
Supreme |
07-Dec-2021 09:28
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DBS says hospitality recovery delayed, not derailed by Omicron
DBS Group Research on Monday (Dec 6) said that Singapore hotels are unlikely to be impacted significantly by the sudden emergence of the newfound Omicron variant, given domestic demand drivers.
The research team' s top picks are Ascott Residence Trust (ART) Ascott Trust: HMN 0% and Far East Hospitality Trust (FEHT) Far East HTrust: Q5T 0%, due to their ability to ride the upcycle faster and their significant exposure in large domestic markets and high stable rent make-up.
" With vaccination rates higher globally this time round, we remain optimistic that any delay in reopening is unlikely to be extended we have not yet seen any restrictions on travelling domestically," the research team said.
DBS has " buy" calls on both ART and FEHT.
Its ART target price of S$1.30 represents a potential upside of 32.7 per cent from the counter' s trading price of S$0.98 as at 3.50 pm on Monday.
Meanwhile, its FEHT target price of S$0.78 represents a potential upside of 33.3 per cent from the stapled group' s trading price of S$0.58 as at 3.50 pm on Monday.
The hospitality trusts are also trading at attractive valuations, DBS said in a sector note. It estimates DPU (distribution per unit) growth to remain robust, in the 16-43 per cent range, when travel momentum starts.
" We think that the long-term strategy of gradually pulling the tourism sector and business travel segment back to normalcy remains and can be quickly ramped up just as they are halted," DBS said.
While tourist inflow was minimal in 2021, the hospitality sector has primarily relied on local staycation demand and the government quarantine business for most part of the year. That being said, the tightening measures coincided with major holiday months - June and September, affecting both dine-in and social limit caps, deterring families from booking hotel staycations, DBS said.
" 2021 was a softer-than-expected year for us but we maintain that the year 2022 onwards brings much hope," DBS said.
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Lobster
Elite |
06-Nov-2021 13:28
Yells: "Even Adam Khoo believes in the Black Market!" |
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I posted this on the othe4 thread but seems people are dead on tbis Mother of all hospitality reits
Wonder why no interest in this powerhouse... very surprised nobody posted this |
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Lobster
Elite |
03-Nov-2021 17:54
Yells: "Even Adam Khoo believes in the Black Market!" |
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I refer to Ascott as the Mother of Hospitality REITs... this guy refers to it as the King of Service Apartment.... watch him if you are unfamiliar with this stock, or unconvinced of it s potential... https://www.youtube.com/watch?v=Z9_gKnV7m6E& t=500s |
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Joelton
Supreme |
02-Nov-2021 09:33
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Ascott Residence Trust to acquire student housing asset in US for US$83.3m
ASCOTT Residence Trust (ART) Ascott Trust: HMN +2.91% will acquire a freehold 548-bed student accommodation asset in Champaign, Illinois for US$83.3 million, its managers said in a bourse filing on Monday (Nov 1).
The managers expect the US acquisition will increase ART' s pro forma FY2020 distribution per stapled security by around 1.2 per cent.
It also expects the property' s earnings before interest, tax, depreciation and amortisation yield to rise to 4.8 per cent from 4.5 per cent on strong rental growth for the academic year (AY) 2022.
The acquisition - which will likely be completed in mid-November 2021 - will be funded by debt and part of proceeds from ART' s private placement in September.
Named Seven07, the student accommodation is ART' s fourth student accommodation investment within 10 months this year.
It had in February acquired the 525-bed Paloma West Midtown in Atlanta, Georgia for US$95 million and in September the 1,005-bed Wildwood Lubbock in Texas for US$70 million. In June, ART and its sponsor also announced they would jointly invest and develop a freehold student accommodation in South Carolina, with the former investing US$55.2 million.
Beh Siew Kim, chief executive officer of ART' s managers, noted that Seven07 is 100 per cent occupied for AY2021 and is 50 per cent pre-leased for AY2022, with strong rental growth of about 8 per cent over AY2021.
" With Seven07, ART will increase our student accommodation and rental housing properties to about 12 per cent of our total portfolio value, keeping us on target to grow longer-stay lodging assets to about 15 to 20 per cent in the medium term," she said.
" ART continues to ramp up our investments in the longer-stay segment to build stable income and the resilience of our portfolio," Beh added.
The acquisition will put ART' s gearing at 35.8 per cent.
The managers noted that there is minimal new private student accommodation supply in the vicinity of Seven07 in the medium term.
Seven07, opened in 2019, serves about 56,000 undergraduate and graduate students from the nearby University of Illinois Urbana-Champaign (UIUC), a flagship university of Illinois that is ranked as one of the top schools in the US for its accounting, computer science and undergraduate engineering programmes, ART' s managers said.
UIUC' s student population has grown consistently at a compound annual growth rate of 2 per cent from 2010 to 2020, twice the national average. Enrolment at UIUC also grew 2 per cent in 2020 despite Covid-19.
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