SINGAPORE (July 15): DBS Group Research analyst Derek Tan has maintained his “buy” call on Ascott Residence Trust (ART) with a target price of $1.10 following its profit guidance on Monday.

On the back of global travel restrictions and the circuit breaker measures from April to June, which saw the suspension of non-essential services, ART says it expects its distributable income for 1H20 to be reduced by 55-65% y-o-y from $74.6 million in 1H19, and its distribution per unit (DPU) to decline by 65-75% from 3.43 cents in 1H19.

In a Monday report, Tan says he is maintaining his full-year estimates for ART’s distributable income and DPU of $140 million and 4.52 cents respectively due to the recovery curve anticipated for 2H20, even though the figures “may look high for now”.

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