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
1.24
Same
1.240
