SINGAPORE (Nov 2): CGS-CIMB Securities continues to rate Ascott Residence Trust (Ascott REIT) at “hold” at an unchanged $1.12 target price on limited re-rating catalysts, after the trust’s latest 9M DPU of 5.01 cents came in line with expectations.

To recap, the decline 9M DPU was due to the absence of higher forex gains which were realised in the previous year. Ascott REIT’s DPU for the 3Q ended Sept grew 8% on-year to 1.82 cents due to revenue growth which was underpinned by additional revenue from newly-acquired property assets, as well as higher revenue from existing properties.  

In a Thursday report, analyst Eing Kar Mei says she views Ascott REIT as a well-diversified trust where weaker markets are usually compensated by the stronger markets, and vice versa. She also sees the trust as a source of “stable but slow income growth”.

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