Ascott Residence Trust - Recovery Gaining Traction
- Ascott Residence Trust (SGX:HMN) reported a 22% y-o-y increase in 1Q22 portfolio RevPAU to S$67, driven by higher ADR and occupancy rates. Revenue and gross profit increased y-o-y due to contributions from newly acquired properties and stronger operating performance of the portfolio.
- Ascott Residence Trust (SGX:HMN)’s gearing as at 1Q22 stood at 37.8%, providing the trust with a debt headroom of S$1.8bn, assuming a gearing of 50%. An estimated 70% of Ascott Residence Trust (SGX:HMN)’s debt is hedged to fixed rates. In terms of sensitivity, a 25bp change in average funding cost could impact its DPU by 0.5%.
- In terms of strategy, Ascott Residence Trust (SGX:HMN) continues to look for opportunistic divestments to unlock value and recycle capital into higher yielding hospitality and longer stay properties, and development projects and asset rejuvenation to enhance returns.
- We raise our FY22-24F DPU forecast for Ascott Residence Trust (SGX:HMN) by 0.4-0.9% post update. Accordingly, our DDM-based target price for Ascott Residence Trust (SGX:HMN) is raised to S$1.24.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-29 2022-04-29
Read also CGS-CIMB's most recent report:
2022-10-31 CapitaLand Ascott Trust - More Recovery And Portfolio Reconstitution.
Previous report by CGS-CIMB:
2022-10-07 CapitaLand Ascott Trust - Recovery & Inorganic Growth Ahead.