Ascott Residence Trust - OCBC Investment 2016-10-21: 3Q16 DPU boosted by one-off gain

Ascott Residence Trust - OCBC Investment 2016-10-21: 3Q16 DPU boosted by one-off gain ASCOTT RESIDENCE TRUST A68U.SI

Ascott Residence Trust - 3Q16 DPU boosted by one-off gain

  • Ascott Residence Trust’s (ART) 3Q16 results met our expectations. 
  • Gross revenue rose 9.5% YoY to S$123.9m, while DPU jumped 13.5% to 2.35 S cents. The latter was boosted by a one-off realised exchange gain of S$3.3m arising from the repayment of foreign currency bank loans with the divestment proceeds from Fortune Garden Apartments and a one-off expense of S$1.2m incurred in 3Q15. Excluding these items, ART’s adjusted 3Q16 DPU was flat YoY at 2.15 S cents. 
  • For 9M16, ART’s gross revenue increased by 15.5% to S$348.8m and formed 72.0% of our full-year forecast, while DPU was up 5.1% to 6.22 S cents (adjusted 9M16 DPU was 5.81 S cents; -3.2%) and constituted 77.6% of our FY16 projection. 
  • ART’s portfolio RevPAU grew 2% YoY to S$144 in 3Q16, driven by the acquisitions made in 2015 and 2016. However, on a same store basis (excluding the acquisitions), RevPAU for 3Q16 decreased by 11% YoY. This was largely attributed to weaker performance from China, Singapore, Philippines (arising from ongoing renovation) and UK (arising from depreciation of GBP against SGD). 
  • We maintain our BUY rating and S$1.24 fair value estimate on ART.




Deborah Ong OCBC Investment | http://www.ocbcresearch.com/ 2016-10-21
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 1.24 Same 1.240



Advertisement




MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......


ANALYSTS SAY


loading.......