Analyst Note| Lorraine Tan, CFA |
We make minor adjustments to our income estimates on Ascott Residence Trust following the release of generally in line interim results. The trust raised its interim distribution per unit, or DPU, to 2.05 Singapore cents (SG cents) helped by gains from the sale of three hotel assets that raised around SGD 253 million. The trust channeled SGD 20 million from these proceeds to fund the interim DPU, which is within our assumption for SGD 40 million for the full year to be allocated from disposal gains toward supporting a total 2021 DPU of 4.37 cents. However, our fair value estimate is increased to SGD 1.04 from SGD 1.00 to account for lowered net debt and the sales proceeds.