CapitaLand Ascott Trust: Return of International Concerts and Events Is a Boon

We maintain our fair value estimate for CapitaLand Ascott Trust at SGD 1.30 per stapled security after the in-line first-quarter business update. We think the trust is undervalued currently, trading at close to a 7% distribution yield for 2024. Although the tailwind of post-covid recovery is moderating, we expect the trust’s asset-enhancement pipeline of seven projects and redevelopment of Somerset Liang Court to drive near-term growth and add value to stapled securityholders.