Ascott Residence Trust - OCBC Investment 2019-06-25: A Smaller Margin Of Safety

ASCOTT RESIDENCE TRUST (SGX:A68U) | SGinvestors.io ASCOTT RESIDENCE TRUST (SGX:A68U)

Ascott Residence Trust - A Smaller Margin Of Safety

  • Portfolio of quality assets…
  • But tight valuations as at 24 Jun’s close.
  • Switch to Keppel DC REIT.



Total returns of 24.5% since the start of the year



Trading at stretched valuations as at 24 Jun’s close

  • We believe Ascott Residence Trust’s YTD rally was supported by a flight to defensive safe names and a dovish bias from the Fed.
  • While we continue to like Ascott Residence Trust for its highly geographically diversified portfolio of high quality assets, we believe valuations are stretched as at 24 Jun’s close. According to Bloomberg consensus, Ascott Residence Trust is trading at a 5.58% blended forward dividend yield, more than 2 standard deviations below its ten-year average.
  • As at 24 Jun’s close, Ascott Residence Trust is trading at a 5.4% FY19F dividend yield (our own forecast). Gearing stands at 35.7% as at 31 Mar 2019. See Ascott Residence Trust's dividend history.


Switch from Ascott REIT to Keppel DC REIT, which is more fairly valued






Deborah Ong OCBC Investment Research | Chu Peng OCBC Investment | https://www.iocbc.com/ 2019-06-25
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.250 SAME 1.250



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......