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Ascott Residence Trust HMN

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Morningstar’s Analysis

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Currency in SGD
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5-Star Price

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Economic Moat

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Capital Allocation

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Ascott's Higher Interim Distribution in Line With Expectation; FVE Raised to SGD 1.04

Lorraine Tan, CFA Regional Director

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. 

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Company Profile

Business Description

Ascott Residence Trust, or ART, is a hospitality trust focusing on serviced residences, hotels, rental housing and student accommodation. Following its merger with Ascendas Hospitality Trust in December 2019, its portfolio is currently valued at more than SGD 6.7 billion, consisting of 86 properties with more than 16,000 units. Its properties are spread across 38 cities in 15 countries globally. Its main markets include the United States, France, Japan, Singapore, the United Kingdom, Vietnam, China and Australia. The trust is a stapled unit comprising Ascott REIT, which is managed by manager Ascott Residence Trust Management Limited and Ascott Business Trust, which is managed by trustee-manager Ascott Business Trust Management Pte. Ltd. Parent CapitaLand owns around a 40% stake in ART.

Contact
168 Robinson Road, No. 30-01, Capital Tower
Singapore, 068912, Singapore
T +65 63899388
Sector Real Estate
Industry REIT - Diversified
Most Recent Earnings Dec 31, 2019
Fiscal Year End Dec 31, 2021
Stock Type
Employees 40,000

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