Maybank Kim Eng analyst Chua Su Tye has rated “buy” on Ascott Residence Trust (ART) with a maintained target price of $1.05 after it reported a 27% increase q-o-q in its revenue per average unit (RevPAU) to $47.

Portfolio occupancy also improved 10 percentage points q-o-q to 40% for the 3QFY2020, which 93% of its 88 properties operational, up from 76% in 2QFY2020.

“Demand from government contracts and long-stays cushioned its net property income (NPI), while domestic demand has gained pace (especially in China) and should support RevPAU recovery in FY21,” says Chua.

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