Ascott Residence Trust - CGS-CIMB Research 2019-07-03: Joining Forces

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

Ascott Residence Trust - Joining Forces




Combining ART and ASCHT



Scheme consideration of S$1.0868/ASCHT stapled unit



DPU accretive deal; potential upside kicker from index inclusion



Maintain HOLD

  • We leave our DPU estimates unchanged pending inclusion of Ascendas Hospitality Trust’s earnings, post completion. Our DDM-based Target Price remains at S$1.15. Ascott Residence Trust is currently trading at 5.4% FY19-20F (before adjustments) DPU yield. Retain our HOLD rating for now.
  • Upside risks include successful completion of Ascendas Hospitality Trust combination and inclusion into the FYSE EPRA NAREIT developed index; downside risks include dampened demand due to slower macro growth outlook.





EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://research.itradecimb.com/ 2019-07-03
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.150 SAME 1.150



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