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DBS keeps 'buy' on Ascott Residence Trust as longer stay portfolio pulls its weight

The Edge Singapore
The Edge Singapore5/2/2022 02:50 PM GMT+08  • 3 min read
DBS keeps 'buy' on Ascott Residence Trust as longer stay portfolio pulls its weight
Lyf one-north is enjoying occupancy of 85% even though it was opened just last November / Photo: ART
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DBS Group Research has kept its “buy” call and $1.30 target price on Ascott Residence Trust, as its strategy of shifting towards so-called “longer stay” portfolio of properties starts to gain traction.

Longer stay segment, which refers to student accommodation and other longer-term lease properties, make up around 17% of ART’s asset under management. Yet, they contributed around 28% of its gross profit for the quarter.

The bulk of ART’s properties remains serviced apartments where average tenancy tends to be much shorter and which has been hit over the past couple of years because of the pandemic.

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