Compelling value in Ascott Residence Trust despite new rental restructure: DBS

DBS Group Research’s Geraldine Wong and Derek Tan have maintained their “buy” call on Ascott Residence Trust (ART) with a raised target price of $1.20 in a Jan 6 note. 

The analysts said they see “compelling value” in ART at 0.8x price to net asset value (P/NAV), which is more than -1.5 standard deviation (s.d.) of its historical 10-year mean, with an attractive 6.9% FY2022 dividend yield with upside if travel rebound occurs faster than expected. 

Furthermore, a focus on big domestic travel markets and long-stay segment should pay off for ART, as a phased reopening is a positive sign that its portfolio has attained at least a breakeven level of operations, the analysts highlighted.