CGS-CIMB Research’s Eing Kar Mei and Lock Mun Yee have downgraded its rating on Ascott Residence Trust to “hold” from “buy albeit with a slightly higher target price of $1.08, up from $1.05. 

This is because they see a “lack of catalysts” and said that while there are signs of a recovery, the trust “remains volatile and hinges on the effectiveness of vaccines.”

They note that ART’s properties in China saw the least impact from Covid-19, with a 25% yoy Revenue per Available Room (RevPAU) decline in 2HFY2020, supported by long stays and recovery in domestic demand. 

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