In a Sept 26 note, Koh is maintaining “buy” on ART with a higher target price of $1.36 from $1.35 previously. The new target price represents a 24.8% upside.
With recent acquisitions in Australia, France, Vietnam, Japan and the US, Ascott Residence Trust (ART) is pivoting to longer-stay accommodation. This will improve the REIT’s resilience, says UOB Kay Hian Research analyst Jonathan Koh.
“ART is acquiring three serviced residences in Australia, France and Vietnam; five rental housing properties in Japan and an additional 45% stake in student accommodation The Standard at Columbia in the US for $318.3 million,” writes Koh. “The acquisitions expand ART’s exposure to longer-stay accommodation from 17% to 19% of portfolio valuation and are accretive to 2021 distribution per unit (DPU) by 2.8%.”
