Song says Ascendas Hospitality has often been mistaken as a Singapore-focused hospitality REIT when 87% of the trust’s FY17 NPI are sourced outside Singapore and contribution from its sole Singapore property is derived from a fixed rental income stream.
SINGAPORE (June 19): DBS Group Research is maintaining its “buy” on Ascendas Hospitality Trust with a revised target price of 88 cents given its attractive yield and discount to book value.
“We believe at current level, Ascendas Hospitality offers a compelling yield in excess of 7% which is based on a 95% payout ratio,” says lead analyst Mervin Song in a Monday report, “In addition, the stock trades at a discount to its NAV per unit of 92 cents.”
