SINGAPORE (Oct 14): During a recent joint roadshow by the managers of Ascott Residence Trust (Ascott REIT) and Ascendas Hospitality Trust (A-HTrust), an Ascott REIT unitholder wondered why its unit price had not moved since July 3, when the merger between Ascott REIT and A-HTrust was announced. In contrast, A-HTrust’s unit price is up 11.2%. Since the start of the year, A-HTrust is up 41%, while Ascott REIT has gained 22%.

Usually, the acquired entity outperforms and the acquirer underperforms. Still, Ascott REIT continues to gain ground despite being the acquirer, partly because the US Federal Reserve has articulated that it is committed to an easier interest rate policy. OUE Commercial Real Estate Investment Trust — which acquired OUE Hospitality Trust — is up 17%.

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