Far East Hospitality Trust - Unearthing Hidden Gold From Its Portfolio
FAR EAST HOSPITALITY TRUST (SGX:Q5T)
- Sale of Village Residence Clarke Quay crystallised NAV. We believe that the market has not priced in the sale of the property that accounts for 8% of Far East Hospitality Trust (SGX:Q5T)'s assets. The transacted price at ~58% premium to NAV is a surprise and a key catalyst for Far East Hospitality Trust.
- Far East Hospitality Trust's gearing will drop to ~33.%, empowering the REIT with gearing capacity to fund acquisitions.
- Far East Hospitality Trust is trading at a 0.8x or 0.7x of its revalued book, placing the stock at close to its -1 standard deviation, a level which we believe presents good value to re-enter the stock.
- Revision of estimates and raising our target price for Far East Hospitality Trust to S$0.78.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Geraldine WONG DBS Group Research | Derek TAN DBS Research | https://www.dbsvickers.com/ 2021-12-03
SGX Stock
Analyst Report
0.78
UP
0.700
Previous report by DBS Research:
2021-03-31 Far East Hospitality Trust - Extracting Hidden Gold Within The Portfolio; En-bloc Potential Of Village Residence Clarke Quay
Target prices by 3 other brokers at Far East Hospitality Trust Target Prices.
Listing of broker reports at Far East Hospitality Trust Analyst Report.
Relevant links:
Far East Hospitality Trust Share Price History,
Far East Hospitality Trust Announcements,
Far East Hospitality Trust Dividends & Corp Actions,
Far East Hospitality Trust News Articles