PhillipCapital’s Natalie Ong has maintained her “buy” call and target price of $1.17 on Ascott Residence Trust despite a weaker set of 2HFY2020 results.

ART reported a 39.5% y-o-y drop of revenue to $161.4 million, down from its 2HFY2019 figure of $266.5 million. Gross profit also dropped by more than half, from $130.3 million to $61 million. 

FY2020’s distribution per unit of 3.03 cents also came in below PhillipCapital’s expectations, at 75% of its forecast. Ong noted capital distribution from divestment gains formed 47.8% of DPU.

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