SINGAPORE (Oct 29): DBS Group Research is maintaining Frasers Hospitality Trust (FHT) at “buy” its portfolio of quality hotels is hard to replicate at its current trading yield.

FHT is also in a strong position to pursue acquisition opportunities as its gearing stands at 33-34% while the stock is trading at a high forward yield of 6.9% and at a discount to book with most of the risks factored in.

In a Monday report, lead analyst Mervin Song says DPU-accretive acquisitions would be the next re-rating catalyst for FHT given it has a successful acquisition track record shown by the purchase of Sofitel Sydney Wentworth and Novotel Melbourne.

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