Wednesday, October 30, 2013

Ascott Residence Trust : Driven by acquisitions (DBSV)

Ascott Residence Trust
BUY S$1.30
STI : 3,205.24
Price Target : 12-Month S$ 1.42
Driven by acquisitions

• 3Q13 results slightly ahead
• Refurbishments completing in subsequent quarters to drive organic growth
• Divestment of Somerset Grand Fortune Garden Beijing is positive
• BUY, TP S$1.42


Highlights
3Q13 DPU of 2.37 Scts slightly ahead. Ascott Residence Trust (Ascott REIT) reported revenues and gross profit of S$86.1m (+11% y-o-y) and S$44.8m (+10%) respectively. Performance was largely driven by an expanded portfolio from the acquisitions 17 properties in China, Germany, Japan and Singapore, which more than offset the impact of the divestment of Somerset Grand Cairnhill Singapore. Portfolio RevPAU was 10% weaker y-o-y to S$133/night. Translation impact on gross profits remains manageable at +0.7% Distributable income came in 17% higher y-o-y at S$30.0m, translating to a DPU of 2.37 Scts ( + 6% y-o-y due to an expanded share base).

Our view
Refurbishments to enhance portfolio performance. Ascott REIT continues to take an active management role in its refurbishment programs across the portfolio, to refresh their products and raise room rates to optimise returns. Completed programs at Citadines Toison d’Or Brussels and Somerset Xu Hui Shanghai in 3Q13 have been well received, with average daily rates (ADRs) rising 20%-35%. Looking ahead, the refurbishment programs at its various properties in Jakarta, Perth, Philippines, Barcelona will complete progressively,
allowing the trust to achieve better ADRs in 2014.

Asset recycling to drive higher portfolio yields. The proposed sale of 81 units at Somerset Grand Fortune Garden Beijing for an estimated consideration of up to Rmb 628m (S$128.1m) should be positive for the trust. Proceeds are likely to be used to repay debt in the interim or for yield-accretive acquisitions if the opportunities arise.

Hedging of overseas exposure. The Manager has attempted to reduce income volatility through entering into income hedges for its EUR/GBP exposures (70% of income), which means that uncertainty from income volatility is likely to be reduced going forward.

Recommendation
BUY maintained, TP S$1.42. Ascott REIT offers a steady DPU growth profile of c2-3% p.a. over FY13F-15F. Maintain BUY with a TP of S$1.42 for its attractive 6.9%-7.9% yields.




Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 28/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock