Ascendas Hospitality Trust - DBS Research 2019-07-04: A Bigger New Home 

ASCENDAS HOSPITALITY TRUST (SGX:Q1P) | SGinvestors.io ASCENDAS HOSPITALITY TRUST (SGX:Q1P)

Ascendas Hospitality Trust - A Bigger New Home 




Accept merger offer to gain exposure to largest Asia Pacific hospitality trust.



Benefits to be unlocked with merger.

  • We believe the merger of Ascendas Hospitality Trust and Ascott Residence Trust will enable Ascendas Hospitality Trust unitholders to benefit from a higher DPU. Based on Ascendas Hospitality Trust’s estimates, proforma DPU is expected to increase by 1.8%. Furthermore, unitholders will hold a stake in a trust with a significantly larger free float (S$2.4bn versus S$0.7bn previously).
  • This greater free float should enable the enlarged Ascott Residence Trust to be included in major property indexes, which could result in greater investor interest, fund flows and tighter yields. Finally, unitholders will gain exposure to a globally diversified portfolio which should provide a more stable DPU profile.


Gaining scale for acquisitions.

  • By being part of an enlarged trust and Ascott’s global hospitality platform, Ascendas Hospitality Trust in effect is gaining the necessary scale to pursue acquisitions. Previously, Ascendas Hospitality Trust’s ability to grow its DPU via an inorganic strategy was hampered by its high trading yield and mid-cap status.


WHAT’S NEW - Merger with Ascott Residence Trust a positive development


Ascott Residence Trust to acquire Ascendas Hospitality Trust for S$1.0868 per unit


Positive development for ASCHT unitholders



Accept merger offer from Ascott Residence Trust






Mervin SONG CFA DBS Group Research | Derek TAN DBS Research | https://www.dbsvickers.com/ 2019-07-04
SGX Stock Analyst Report BUY MAINTAIN BUY 1.21 UP 0.980



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