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| https://www.businesstimes.com.sg/companies-markets/s-reits-surge-banks-decline-see-beginnings-rebound " Trade tensions in global markets were evident in the performance of global banks in recent weeks. The Singapore trio of DBS, OCBC and UOB averaged declines of 1.4 per cent. At the same time, recent US inflation data came in below expectations, with concerns about the weakening growth outlook in the US. Despite the recent broad market downturn, Singapore real estate investment trusts (S-Reits) rebounded strongly with the iEdge S-Reit Index gaining close to 5 per cent over the past two weeks. Larger market-capitalisation S-Reits have also led the sector& rsquo s recent gains. Within the Straits Times Index (STI), the seven S-Reits averaged 5.6 per cent gains over the past two weeks." looks like reits got opportunities this year! saw this event reits symposium coming up, not sure if anyone going to see see look look? can register early bird here https://shareinve.st/1tsm |
https://links.sgx.com/FileOpen/20240604_NewsRelease_CLAS%20fully%20acquires%20student%20accommodation%20property%20Standard%20at%20Columbia%20to%20boost%20income%20resilience.ashx?App=Announcement& FileID=805663
Looks ok, but it would be more helpful if they disclosed the EBIT yield rather than the EBITDA yield to give a fuller picture of how attractive the deal is.
Looks ok, but it would be more helpful if they disclosed the EBIT yield rather than the EBITDA yield to give a fuller picture of how attractive the deal is.
Japan performing well in JPY terms but if you factor in the FX then it is the sick man of Asia.
As a foreign investor the question very much is how do you hedge against the FX decline over the long term in a cost efficient way? And is the net return in SGD terms attractive?
As a foreign investor the question very much is how do you hedge against the FX decline over the long term in a cost efficient way? And is the net return in SGD terms attractive?
Ascott sees potential in Japan market, plans footprint expansion
Tokyo winters may be chilly, but the streets are bustling with chattering tourists from Singapore, Korea, Indonesia and various other countries. It is evident that following the pandemic, tourism in Japan has rebounded stronger than ever, driven by pent-up demand and a weaker yen, making spending less restrictive.
Conversations with locals in the hospitality industry revealed that Tokyo hotels have experienced remarkably high occupancy rates since the second half of 2023, with some nearly reaching maximum capacity. Surprisingly, this surge occurred without the return of Chinese tourists in full force.
According to Japan&rsquo s National Tourism Organisation, the country welcomed 25 million tourists in 2023, the largest number since 2019, the full year before the pandemic hit in early 2020. Total spending by visitors hit a record 5.3 trillion yen ($47.8 billion) in 2023, up 10% over 2019 spending per person increased by a third to 212,000 yen, according to the Japan Tourism Agency.
Beh Siew Kim, chief financial and sustainability officer and managing director of lodging, CapitaLand Investment (CLI), says Japan has always been a steady market for The Ascott, CLI&rsquo s lodging arm. As of Dec 31, 2023, Ascott runs 22 properties in Japan under its various brands, with plans to gradually increase, though it did not provide a set goal. &ldquo Japan is a key market for Ascott. It achieved one of the highest average daily rates (ADR) post-pandemic,&rdquo says Beh.
Ascott&rsquo s properties in Japan have demonstrated remarkable resilience, thanks to their long-stay appeal. They effectively cater to residents and international guests. Even during border closures, occupancy rates have remained steady, hovering around 50%.
With relatively strong business continuity, Ascott opened three new properties in Japan during the pandemic, all remaining cash flow-neutral throughout. Beh adds that the company had no cash flow issues at that time, and ramping up business to cater to local guests was not an issue.
In 2023, Ascott announced a brand refresh to help showcase its flex-hybrid accommodation concept, which has proven resilient through and after the pandemic. This hotel-in-residence model is designed to be more adaptable to better cater to guests with different profiles and lengths of stay.
Kevin Goh, CEO of Ascott and CLI Lodging, says that operating on such a &ldquo flex-hybrid&rdquo model helps Ascott stay agile throughout different business cycles, investing its resources in a way that generates higher returns for investors and owners. &ldquo By being responsive to shifts in demand, Ascott can quickly pivot its operations to suit the market&rsquo s needs and optimise occupancy to drive revenue growth,&rdquo he says.
According to Goh, this model can also help mitigate risks of over-reliance on a single market segment. When one segment experiences a downturn, the business can focus on other better-performing segments. This adaptability can help build a more stable income stream amid growing guest demand.
&ldquo Third-party property owners and developers are also responding positively to this trend, contributing to our growing momentum of management contract signings, even during the pandemic,&rdquo he adds.
Booming tourism industry
Ascott runs a total of about 950 properties across over 40 countries (as at Dec 31, 2023). While the overall business is recovering from the pandemic, Beh is confident of further growth in Japan, attracting both visitors and investors alike.
Beh explains that many investors are attracted by the fact that hospitality assets have the flexibility to charge higher rates if there is stronger demand &mdash and the rates can vary day by day. &ldquo This is unlike office or data-centre properties, where the price is fixed and locked in for a certain time. It cannot be adjusted as frequently,&rdquo she explains.
With this new flex-hybrid model in place, Beh says the company will be able to command higher ADR and higher margins with short-term stays, while still maintaining its core long-stay visitors. In 2023, ADR in Japan increased by over 20% y-o-y and higher than pre-pandemic levels. However, Beh adds that the ADR is highly dependent on several factors, such as the type of properties, location and seasonality.
Across Ascott&rsquo s global portfolio, North Asia (excluding China) saw the fastest-growing revenue per available unit (RevPAU) from 2022, driven by Japan at almost 150% y-o-y growth. Comparing 4Q2023 with the same period from the year before, Japan achieved a y-o-y RevPAU growth of 66% and performed at 101% of pre-Covid-19 levels.
While 60% of the rooms in Ascott&rsquo s Japan properties are occupied by long-stay guests, 65% of the company&rsquo s revenue is generated from short-stay guests. Hotels generally require a higher staff-to-room ratio, thus incurring more costs. However, for long-stay properties, the staff-to-room ratio is below one, says Beh, which means better operating margins.
Ascott has been contributing positively to CLI, helping it weather a bumpy FY2023, where CLI&rsquo s earnings for the year ended December 2023 declined by 79.0% y-o-y to $181 million.
Ascott&rsquo s asset-light model means that its income is derived largely from operating its 950 properties. Any additional properties it manages under one of its brands are likely to contribute directly to its fee-related earnings, making Ascott a highly ROE-generating business.
Overall revenue declined by 3.2% y-o-y to $2.78 billion from $2.88 billion last year, mainly due to lower corporate leasing income from Synergy Global Housing, a majority-owned accommodation provider in the US that offers apartments and corporate leases, as well as lower rental revenue from properties in China in the real estate investment business segment, partially offset by higher fee income-related businesses (FRB).
FRB revenue, which has been providing strong recurring contributions to CLI&rsquo s overall returns y-o-y, gained 9% y-o-y to $1.07 billion, anchored by higher contributions from lodging management and commercial management.
Lodging management fee-related earnings increased 28% y-o-y to $331 million with nearly 9,600 units turning operational. Riding on the robust rebound of international travel, RevPAU grew 20% from a year ago to $91, driven by higher occupancy and average daily rates across most geographies.
Expanding portfolio
Given the confidence in the market, it is no surprise that Ascott is expanding its presence in Japan. In addition to the properties launched during the pandemic, Ascott plans to introduce more properties in the country. Among them is a property by lyf, Ascott&rsquo s co-living brand, which is set to open in Shibuya, Tokyo. Owned by CapitaLand Ascott Trust HMN -0.53% , this property will mark Ascott&rsquo s 23rd venture in Japan and is scheduled to open in the fourth quarter of 2024.
Moving forward, Ascott plans to expand its lyf and Oakwood brands.
lyf is CLI&rsquo s own brand created back in 2019. In January, Ascott announced that it had signed on eight new properties to carry the lyf brand, expanding into new resort and city destinations such as Bali, Penang, Sydney and Frankfurt. The brand is present in 21 cities worldwide, with over 5,500 units, both operating and in the pipeline.
Unlike its namesake Ascott brand, as well as the more established brands Citadines and Somerset, lyf caters more to a younger demographic of travellers or &ldquo the next-generation traveller&rdquo , including digital nomads, technopreneurs, creatives and self-starters. Although the units are smaller than Ascott&rsquo s serviced residential properties, lyf has several shared spaces to encourage interaction between guests.
Goh says that there is tremendous potential for Ascott to further scale lyf across more hospitality asset classes, whether as a full-service hotel or resort, especially with the growth pace seen over the year.
&ldquo With more than 30 lyf properties both in operation and under development, Ascott will bring lyf to even more destinations in the year ahead, as we work towards our target of 150 properties with over 30,000 units by 2030,&rdquo he adds.
In 2023, Ascott signed eight new lyf properties with a total of close to 1,500 units, achieving a signing pace that has almost doubled that in 2022. These will be progressively launched from 2024. Also in 2023, Ascott saw a record number of lyf property openings, doubling that of 2022.
The newly-operational properties have displayed strong results since opening, as Ascott rides on the tourism and hospitality boom. In particular, lyf Ginza Tokyo, which opened at the end of November 2023, achieved a higher-than-expected average daily rate and notably outpaced anticipated occupancy. Guest reviews received across public review portals were also at their highest, a clear signal of the brand&rsquo s relevance within the market.
As for Oakwood, it was acquired by CLI in July 2022 from Mapletree Investments. The acquisition added 81 properties and 15,000 units to CLI&rsquo s global portfolio.
Goh believes that there are &ldquo significant synergies&rdquo between Ascott and Oakwood, given the complementary footprint and product offerings. &ldquo Oakwood will continue to grow alongside Ascott&rsquo s current portfolio of global brands as we continue to build growth momentum for our lodging business. We will be able to leverage Ascott&rsquo s extensive expertise as a global lodging player to deliver greater value to our expanded network of loyal customers and property owners,&rdquo he says.
Following the acquisition, Ascott has further grown the Oakwood brand. In January, Ascott announced that it has expanded Oakwood&rsquo s presence to 48 cities, adding new markets including Busan in South Korea, Batam and Bali in Indonesia, and more.
With almost 18,000 units to date, the Oakwood portfolio has grown by more than 20% post-acquisition, making it one of the fastest-growing global brands in the Ascott portfolio with over 20 new signings since the acquisition.
Goh says Ascott&rsquo s ability to leverage pricing power and meet market demand has resulted in an uplift in revenue and improved margins, contributing to an overall enhanced financial performance of the Oakwood portfolio post-acquisition. &ldquo With more operationally ready properties coming onstream at a faster pace, we are seeing immediate contribution of the Oakwood portfolio to Ascott&rsquo s recurring fee income, which is in line with our aim to double fee earnings to more than $500 million by 2028,&rdquo he adds.
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....
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....
ASCOTT RESIDENCE TRUST INCREASES DISTRIBUTION PER STAPLED SECURITY BY 43% TO 4.32 CENTS IN FY 2021
REVPAU jumped 61% for 2H 2021 and ART&rsquo s expansion in longer-stay assets further enhanced income stability
Singapore, 28 January 2022 &ndash Ascott Residence Trust has increased its distribution per Stapled Security for FY 2021 by 43% to 4.32 cents compared to FY 2020. ART&rsquo s distribution income also grew 46% to S$137.3 million compared to FY 2020. The distribution income for FY 2021 included a one-off distribution of divestment gain of S$45.0 million to share divestment gains with Stapled Securityholders, to replace income loss from divested assets and mitigate the impact of COVID-19. Excluding the divestment gains distributed in FY 2021 and FY 2020, ART&rsquo s DPS rose 85% year-on-year due to improved operating performance and ART&rsquo s active portfolio management to enhance income stability.
ART&rsquo s revenue per available unit continued its upward trajectory, rising over six consecutive quarters since 2Q 2020. With the pace of reopening picking up, its REVPAU for 4Q 2021 registered the strongest quarter-on-quarter increase at 24% to S$87. ART&rsquo s REVPAU jumped 61% to S$79 for 2H 2021 compared to 2H 2020. Its 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, the United States of America (USA), United Kingdom and Australia registered the strongest growth.
Revenue for 2H 2021 increased by 30% to S$209.4 million compared to 2H 2020. This was mainly attributed to higher revenue from its existing portfolio and additional contributions from the acquisition of student accommodation assets in the USA and rental housing properties in Japan in FY 2021. Gross profit for 2H 2021 also grew 49% to S$91.2 million compared to 2H 2020. ART&rsquo s stable income sources contributed about 70% of its gross profit in FY 2021 while the remaining income from management contracts is expected to pick up as demand for accommodation increases with the resumption of travel.
REVPAU jumped 61% for 2H 2021 and ART&rsquo s expansion in longer-stay assets further enhanced income stability
Singapore, 28 January 2022 &ndash Ascott Residence Trust has increased its distribution per Stapled Security for FY 2021 by 43% to 4.32 cents compared to FY 2020. ART&rsquo s distribution income also grew 46% to S$137.3 million compared to FY 2020. The distribution income for FY 2021 included a one-off distribution of divestment gain of S$45.0 million to share divestment gains with Stapled Securityholders, to replace income loss from divested assets and mitigate the impact of COVID-19. Excluding the divestment gains distributed in FY 2021 and FY 2020, ART&rsquo s DPS rose 85% year-on-year due to improved operating performance and ART&rsquo s active portfolio management to enhance income stability.
ART&rsquo s revenue per available unit continued its upward trajectory, rising over six consecutive quarters since 2Q 2020. With the pace of reopening picking up, its REVPAU for 4Q 2021 registered the strongest quarter-on-quarter increase at 24% to S$87. ART&rsquo s REVPAU jumped 61% to S$79 for 2H 2021 compared to 2H 2020. Its 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, the United States of America (USA), United Kingdom and Australia registered the strongest growth.
Revenue for 2H 2021 increased by 30% to S$209.4 million compared to 2H 2020. This was mainly attributed to higher revenue from its existing portfolio and additional contributions from the acquisition of student accommodation assets in the USA and rental housing properties in Japan in FY 2021. Gross profit for 2H 2021 also grew 49% to S$91.2 million compared to 2H 2020. ART&rsquo s stable income sources contributed about 70% of its gross profit in FY 2021 while the remaining income from management contracts is expected to pick up as demand for accommodation increases with the resumption of travel.
ascot result on 28jan 8 am.
Why is everyone fearful of this mighty mother of all hospitality REITs? Come on! If Ascott is bad, it will bring every other hospitality stock down...
DBS says hospitality recovery delayed, not derailed by Omicron
DBS Group Research on 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 +0.99% 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 with a target price of S$1.30
Very very surprised nobody posted this.... must be many envious people about this mother of all hospitality stocks.....
ASCOTT CROWNED WORLD' S LEADING SERVICED APARTMENT BRAND AT WORLD TRAVEL AWARDS 2021
😀 Biggest winner at the World Travel Awards 2021 with a total of 28 accolades the greatest number of awards won amongst serviced residence companies
😀 Celebrates win with launch of " Thank You" campaign to give away 28 million Ascott Star Rewards bonus points to members
I will be posting this in all REITs stock in which I have some interests. But please hor, due diligence please, do not take this as the final and only positive statement and cheong to take up positions.....if you are lazy to read through the entire article, just focus on the highlighted parts....
Why is the Singapore REIT market going so strong after two years of COVID-19?
SINGAPORE: Singapore real estate investment trusts or S-REITs have emerged as a resilient segment of the local stock exchange in the past two years.
Traditionally a key pillar of the portfolios of individual investors in Singapore, the iEdge S-REIT Index, regarded as the S-REIT benchmark, reported a total return of 5.2 per cent since the start of 2020 to Nov 17.
This was despite S-REITs raising new equity from unitholders, creating additional units and leading to potential dilution risk. In the past 23 months, S-REITs raised a total of S$8 billion through placements and rights issues led by mega-issuances from Ascendas Real Estate Investment Trust and Frasers Commercial Trust.
Most S-REITs largely maintained their dividends, compensating for the fall in unit prices in this period.
Global financial markets including S-REITs initially crashed when COVID-19 became a pandemic, with investors panicking and selling liquid financial assets. For investors daring and savvy enough to put money to work during the trough in end-March 2020, total returns from capital gains have been a whopping 57 per cent.
Despite headlines on troubles in the retail space and how work-from-home has made offices redundant, occupancies measured by leases have remained high for S-REITs holding shopping malls and offices in Singapore, with little problems in rental collection, even if fewer are using these spaces.
In the hardest hit hotel sector, the fall in physical property asset value was contained to less than 10 per cent at a portfolio level among the S-REITs tracked by OCBC, a good outcome despite the pandemic curbing travel.
Hospitality REITs will likely need time to recover and could do better in a 24-month timeframe as borders reopen further.
S-REITs today generate a significant volume of trading activity for the stock exchange - about one-fourth of the daily turnover before COVID-19. Primary equity markets in Singapore also skew towards S-REITs.
S-REITs, at S$110 billion, represents 12 per cent of Singapore&rsquo s whole equity market by market cap &ndash a figure that is 6 per cent for Australia and only 2 per cent for Japan, the other two top REIT markets in the Asia-Pacific with large domestic economies.
WHY S-REITS STILL ATTRACT SO MANY INVESTORS
The top-performing Singapore stock in the past 23 months goes to iFAST Corporation, an investment products distribution platform, which generated total returns of 771 per cent during this time, superseding the Bloomberg Bitcoin Galaxy Index at 750 per cent.
This is lower than the 1,131 per cent on the Bloomberg Galaxy Crypto Index tracking cryptocurrencies.
Still, S-REITs and the Singapore commercial property market continue to attract significant investor attention.
Investors in Singapore are very familiar with the nuts and bolts of running a property, and understand how policies like stamp duties, urban planning, zoning, tenancy and ownership rules influence whether and when investors should buy an investment property and what to look out for in assessing a property&rsquo s attractiveness.
Many like the idea of owning a passive, stable and recurring income stream. S-REITs generate fairly stable revenue, with the iEdge S-REIT Index reporting revenue per unit of S$132.5 in 2019.
Though it dropped 6.3 per cent in 2020, analysts expect a rebound to S$135.6 this year.
S-REITs are a good source of income. Qualifying S-REITs are encouraged to pay gains to unitholders instead of hoarding profits as they not taxed on dividends distributed to unitholders.
The key challenge is share dilution when S-REITs need to raise to acquire new properties.
Past transactions that have stirred market discussions include K-REIT Asia&rsquo s (now known as Keppel REIT) 87.5 per cent interest in Ocean Financial Centre in 2011, Ascott Residence Trust&rsquo s acquisition of Ascott Orchard Singapore, Citadines City Centre Frankfurt and Citadines Michel Hamburg in 2017 and Lippo Malls Indonesia Retail Trust&rsquo s acquisition of Puri Mall in 2021.
S-REITs are also regulated as a collective investment scheme under the Securities and Futures Act, where there is a 50 per cent cap on the leverage limit for S-REITs to keep credit risks in check. As listed entities, S-REITs also follow SGX rules on the disclosure of information and the right for minority investors to vote on major matters.
S-REITS MORE ACCESSIBLE THAN EVER
Until S-REITs were launched in July 2002, the commercial property market was inaccessible to most individual retail investors, with ticket sizes of each standalone commercial property in the millions and billions of dollars.
Today, all it takes is S$230 at last Wednesday&rsquo s prices for an individual investor to buy into CapitaLand Integrated Commercial Trust (&ldquo CICT&rdquo ), Singapore&rsquo s largest REIT, and enjoy a portion of CICT&rsquo s rental income from shopping malls and offices.
Few investment opportunities provide such stability for 4 to 7 per cent dividend yield per year. It&rsquo s little wonder such investment classes with a dividend income and the potential for capital gains appeal to investors with a neutral risk profile at Singapore&rsquo s median age of 42.
Singapore has maintained an encouraging ecosystem for the development of S-REITs. Regulatory uncertainty is minimised as regulators routinely seek industry feedback from REIT managers, investors and lawyers before introducing new rules.
The market has grown to include fund managers who invest in S-REITs as their specialty, REIT exchange traded funds and REIT derivatives.
Bank lenders and bond investors in Singapore are highly familiar with S-REITs, together providing a pool of liquidity that allows the S-REIT market to grow bigger. Brokerages are also prepared to lend individual investors buying larger amounts of REIT units.
WILL GAINS IN S-REITS CONTINUE?
The bigger question is whether we will continue to see capital gains in the coming 12 to 24 months as interest rates rise.
In a world where stock market prices are affected by sentiments, Reddit fads and breaking news, S-REITs continue to see strong investor demand because their valuation is backed by commercial properties where asset value has seen a continued upward trend.
Indeed, S-REIT indices are not a good representation of the underlying economy. They are weighted towards larger S-REITs, rather than each S-REIT&rsquo s contribution to the Singapore economy.
The iEdge S-REIT&rsquo s top five components make up 43.3 per cent of the index which have an outsized influence on total returns.
Three are large-cap industrial REITs with industrial properties in Singapore and countries across Asia-Pacific, Europe and the United States &ndash in a world where logistics, data centres, business parks and manufacturing facilities have been resilient through the pandemic.
The remaining two are large-cap commercial REITs owning quality assets with tenants largely staying put despite the economic downturn, with occupancies remaining above 90 per cent.
Beyond the broad index, S-REITs that hold hotels and shopping malls located in the city centre have been dragged by the pandemic. With the city centre hollowed out as we work from home and international travelers non-existent, these S-REITs have underperformed Industrial REITs.
Furthermore, the S-REIT industry has been kept buoyant by an inflow of capital. The broad money supply in Singapore has surged by 10.9 per cent year-on-year as of September. With interest rates on cash near-zero, all that money needs to go somewhere.
The S-REITs market is unlikely to cool anytime soon. There is momentum. Thirteen out of the 80 IPOs with primary share offering in Singapore since 2016 were S-REITs raising S$5.6 billion collectively at an average offer size of S$430 million.
Outside of S-REITs, a further S$2.7 billion was raised for two listings, Kakao Corp, the Internet company global depository receipt listing and NetLink NBN Trust, a business trust which holds infrastructure assets.
The remaining 65 had an average offer size of S$28 million &ndash small cap listings with limited liquidity.
Tellingly, the two upcoming IPOs in Singapore - Daiwa House Logistics Trust and Digital Core REIT - are both S-REITs.
The equity analyst community is still optimistic and forecasting a rise in S-REIT dividends in the next 12 to 24 months.
Driven by the growth and resiliency of industrial assets, particularly logistics warehouse and data centres, the Big Three industrial REITs of Ascendas Real Estate Investment Trust, Mapletree Logistics Trust and Mapletree Industrial Trust also recorded average total returns of 15.6 per cent in the past 23 months.
DON&rsquo T DISMISS SGX
Looking ahead, Singapore investors should not be so quick to dismiss the SGX, given the current slew of corporate restructuring exercises with the potential for capital gains, which may not be immediately apparent to new individual investors in the market.
Buying S-REITs is likely to remain a cornerstone investment strategy for many individual investors. The more pertinent decision points remain how much S-REITs should feature as a percentage of one&rsquo s investment portfolio and which specific ones to invest in.
Still, until a next financial crisis with significant liquidity stress, we are unlikely to repeat the kind of capital gains seen from March 2020 to date in S-REITs.
A lot of the negatives has since been priced in, with the broad iEdge S-REIT Index trading at 1.1 times the price-to-book value, indicating that the market cap of the S-REITs as a broad basket is now higher than the value of the underlying properties.
Okay la, since people are so stubborn against this mother of all hospitality REITs, I ll post one la.....
REIT
Hospitality: Stabilising on a qoq basis
A mixed bag in 3QFY21
CDLHT&rsquo s 9MFY21 NPI increased c.28% yoy to S$57.5m (77% of our forecast). FEHT delivered -3.4% yoy in NPI to S$54.5m (72% of our forecast). CDLHT saw strong yoy performance from New Zealand, Maldives and UK which offset the effect of divestments of Novotel Clarke Quay (Jul 2020) and Novotel Brisbane (Oct 2020). FEHT saw weaker demand for its SR which reduced variable income and commercial space. ART declared advanced distribution of 0.545 Scts for the period of 1 Jul 2021 to 19 Sep 2021, bringing 9MFY21 DPU to 2.59 Scts (64% of our full year forecast).
Singapore yoy RevPAR results mixed but qoq stable
In Singapore, CDLHT&rsquo s 3QFY21 RevPAR (+0.4% yoy) outperformed FEHT and ART&rsquo s RevPAR/RevPAU of -22.4% yoy and -24% yoy (only for Citadines Mount Sophia) respectively. CDLHT has additional hotel on contract and staycation demand in its W Hotel. Meanwhile, FEHT was partially affected by weaker demand from Malaysian workers while ART was impacted by lower rates under the renewed government contract. FEHT also has a smaller proportion of its hotels room on alternative contracts vs. CDLHT. The weaker demand from workers has also impacted FEHT&rsquo s SR (RevPAU: -18.5% in 3QFY21). On a qoq basis, both CDLHT and FEHT&rsquo s hotel RevPAR were flat while FEHT&rsquo s SR RevPAU declined 5.9% qoq. We expect better qoq performance in 4Q driven by staycation and international (from vaccinated travel lanes).
Overseas generally reported stronger qoq RevPAR/RevPAU
Overseas, CDLHT delivered qoq RevPAR improvement in most of the countries (ex- Maldives -1.3% and Australia -52% due to border restrictions imposed on travel into Western Australia), an encouraging improvement since Covid-19, driven by reopening of international borders (Maldives, UK, Germany, Italy) and easing of restrictions (Japan). ART continued to see 5th consecutive quarter of qoq increase in RevPAU since 2Q2020 with portfolio RevPAU up by 8% qoq in 3QFY21 on higher average daily rate (occupancy rate stable), driven mainly by US and Europe as borders reopening gradually, strong domestic demand and group bookings during the Olympic games in Japan (+108% qoq).
Heading towards a gradual recovery Top pick ART
Singapore government contracts for the hotels should last for the next few months (1Q2022). We believe the government will maintain the contracts with the hotels for now as more community care facilities could be needed to cope with the higher number of cases. Even if the government is to reduce their contracts with the hotels, we believe the impact is minimal as Singapore hotels under the REITs are already trading at minimum master lease income level. With the gradual reopening of international borders and increasing vaccination rate, the outlook is improving. We expect ART and CDLHT to top up distribution in 4QFY21 and FEHT to release the retained income of S$3.6m. Our top pick is ART given its larger exposure to domestic demand.
Wonder why no interest in this powerhouse... very surprised nobody posted this
Or this
Ascott Residence Trust declares S$0.00545 DPS for advanced distribution, Q3 RevPAU up 49%
Or this
Hospitality Reits could register higher RevPAR in Q2, with recovery in 2022
Or this
UOBKH upgrades Ascott Residence Trust to ' buy' with higher S$1.16 target price
Or this
UOB Kay Hian adds ART, Singtel and Wilmar to its alpha picks, removes OCBC and SIA
Or this
Ascott' s co-living brand lyf to open 17 properties by 2025
Ascott Residence Trust to acquire fourth student housing asset in US for US$83.25 million
Or this
Ascott Residence Trust declares S$0.00545 DPS for advanced distribution, Q3 RevPAU up 49%
Or this
Hospitality Reits could register higher RevPAR in Q2, with recovery in 2022
Or this
UOBKH upgrades Ascott Residence Trust to ' buy' with higher S$1.16 target price
Or this
UOB Kay Hian adds ART, Singtel and Wilmar to its alpha picks, removes OCBC and SIA
Or this
Ascott' s co-living brand lyf to open 17 properties by 2025
Ascott sees over 40% y-o-y growth in first 7 months of 2021 marks fourth straight year of record growth amid Covid-19
The Ascott Limited, the wholly-owned lodging business unit of CapitaLand Limited, has signed over 8,300 units across over 30 properties in the first seven months of 2021.
The figure represents an over 40% growth y-o-y compared to the same period in 2020.
This marks the fourth straight year of record growth for Ascott despite Covid-19. It also represents a compound annual growth rate (CAGR) of 20% since 2017.
The new units include Ascott&rsquo s new contract to manage the largest serviced residence development in Vietnam with over 1,900 units.
Ascott will also be signing on another Citadines property in Hanoi in July.
In addition, the lodging business has secured two management contracts for the first time in Lao Cai, a Citadines-branded serviced apartment and the first Preference-branded hotel in Vietnam.
Up to July, Ascott has achieved a record of over 2,800 new units in Vietnam.
In the first seven months of 2021, Ascott has also added 2,900 new units in China across 12 properties in the cities of Hefei, Ningbo, Shanghai, Shenyang, Shenzhen, Wuhan and Xi&rsquo an.
Ascott adds that it will be making its entry into Senegal, and has signed new properties in Australia, Cambodia, France, Indonesia, Malaysia and Morocco. The properties are slated to open between 2022 and 2027.
The lodging business expects to see increased fee income contribution once units in the pipeline turn operational, with $20 million to $25 million of fees set to be earned for every 10,000 stabilised serviced residence units.
Ascott has, to date, over 128,000 units around the world. It is on track to achieving its goal of having 160,000 units by 2023.
&ldquo This year, we continued to achieve strong growth by stepping up our expansion with more management contracts and strategic partnerships. We have opened over 3,000 units in 13 properties in China, Indonesia, Japan, Philippines, Singapore and Vietnam,&rdquo says Kevin Goh, CapitaLand&rsquo s CEO for lodging.
&ldquo We expect to open about 50% more units than last year&hellip The newly secured properties will increase Ascott&rsquo s recurring fee income as they open and stabilise, adding on to the over S$195 million in fee income contributed by our operational units in 2020. We have also increased our Fee Related Earnings (FRE) and expanded our Funds Under Management (FUM) to S$8 billion to date through a private fund as well as our sponsored Ascott Residence Trust,&rdquo he adds.
Ascott has been buying and buying assets but doesn' t like to do rights, preferring private placement or its private funds. The last time it did was in 2017. In good times, this is one of the best and consistent paymaster. Vested
Ascott to buy two properties in Paris, Hanoi for S$210m via private equity fund
THE Ascott will spend S$210 million to acquire two properties in France and Vietnam through the Ascott Fund Serviced Residence Global Fund (ASRGF), its private equity fund with Qatar Investment Authority.
The wholly-owned lodging business unit of CapitaLand has entered into two agreements to acquire the two properties on a turnkey basis. They are projected to open in 2024, CapitaLand said in a bourse filing on Monday.
Ascott will acquire a freehold asset in Paris, which will be refurbished and fall under its lyf brand, making it Ascott' s first co-living property in Europe. Named livelyfhere Gambetta Paris, the 139-unit property is located in the 20th arrondissement, near galleries, cinemas, café s and restaurants, street art and music venues.
Ascott will also acquire the 364-unit Somerset Metropolitan West Hanoi. The asset is located in Hanoi' s new central business district and is close to several government agencies as well as local and international corporations. The property is also a 10-minute drive to the Vietnam National Convention Centre and half-an-hour drive to the Noi Bai International Airport.
Ascott Residence Trust to buy three Japan rental housing assets for 6.78b yen
Ascott Trust: HMN +0.5% (ART) will acquire three rental housing properties in Japan for 6.78 billion yen (S$85.2 million), it said on Tuesday.
The properties - City Court Kita 1 jo, Big Palace Minami 5 jo and Alpha Square Kita 15 jo - have a total of 411 units and are located in central Sapporo.
Their average Ebitda (earnings before interest, tax, depreciation and amortisation) yield is about 4 per cent, the stapled hospitality group added.
The acquisitions will be funded by debt and and part of the net proceeds from recent property sales including Somerset Xu Hui Shanghai, and are expected to complete by the end of June.
Bob Tan, chairman of ART' s managers, said the acquisitions will help " diversify from hospitality assets which are facing headwinds due to Covid-19" .
now how sia?
Happy 牛 Year to all.
Wish all good health and good wealth
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Ascott brand lyf adds six new properties in 3 markets
CapitaLand' s wholly owned lodging business unit, The Ascott, is adding over 1,000 units across six new properties in Australia, China and the Philippines, under its co-living brand lyf.
With the additions, Ascott will have a total of 14 lyf properties with over 2,700 units, the company said yesterday. Thirteen of these properties are slated to open between this year and 2024.
Among the six new properties, Ascott has bagged contracts for lyf Malate Manila, its second lyf property in the Philippines, as well as four new lyf properties across China - lyf Shougang Park Beijing, lyf Midtown Hangzhou, lyf Zhangjiang Shanghai, and lyf Dayanta Xi' an. It has also secured its first lyf property in Australia, called lyf Collingwood Melbourne.
Ascott is set to open its first lyf property in Bangkok, Thailand today. This comes after it opened lyf Funan Singapore last September, which was targeted at millennials.
The 196-unit lyf Sukhumvit 8 Bangkok is within walking distance of the Nana BTS Skytrain station and one train stop from the Terminal 21 shopping destination. It is also three BTS stations away from Siam, the Thai capital' s main lifestyle hub for retail, dining and co-working.
Mr Kevin Goh, Ascott' s chief executive officer and CapitaLand' s CEO for lodging, said Ascott' s portfolio continues to be supported by a " strong base" of long-stay guests comprising locals, expatriates and corporates, despite the coronavirus outbreak and challenges in the global hospitality industry.
" lyf is a hybrid lodging solution that combines the best of serviced residences, hotels and co-living apartments. It is designed for guests on long stay with the flexibility to take in short stay," he said.
" The value and demand for lyf is evident in the performance of our first operating lyf property, lyf Funan Singapore, where guests could stay with us safely and comfortably throughout the Covid-19 period," Mr Goh said, adding that the Funan outlet achieved an average occupancy rate of 86 per cent from April to last month.
Head of lyf Joel Oei said the brand took its community engagement activities online and conducted virtual tours and digital-first marketing campaigns to expand its reach amid the pandemic.
Ascott is looking for more opportunities to introduce lyf to key gateway cities in France, Germany, Indonesia, the Netherlands, South Korea, Vietnam and the United Kingdom.