Ascott Residence Trust (ART)

REITs have had a good run, yield compression may have come to an end

(Nov 18): Yields on 10-year Singapore Government Securities have been rising, albeit gently from a low base (see Chart 1). Similarly, yields on 10-year US Treasuries are also rising, from a low of 1.4% in September to 1.945% as at Nov 11 (see Chart 2). On Oct 30, the US Federal Reserve, through a statement by the Federal Open Market Committee, announced a 25-basis-point cut in the Fed funds rate to 1.5% to 1.75%.

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A-HTrust's security holders are short-term beneficiaries of merger with Ascott REIT

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%.

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Local listcos jump on co-living bandwagon

SINGAPORE (Oct 7): In the lobby of the newly launched lyf in Funan is a ball pit to jump into. There is also a GIF booth, where guests can ­create their own moving images to share on their social media platforms. But this is not a children’s den. It is one of the latest co-living spaces that have opened in ­Singapore, targeted at young professionals. Co-living also represents a growth market for a number of public-listed companies.

Slowing tourist arrivals for now but new attractions, limited rooms to benefit hospitality REITs ultimately

SINGAPORE (Aug 28): In 1Q19 ended March, Singapore saw international visitor arrivals grow 1% to 4.7 million visitors while tourism receipts fell 4.8% y-o-y to $6.5 billion, according to data from the Singapore Tourism Board (STB). Meanwhile, gazetted hotel room revenue grew 4.3% to $1 billion.

Across the different components of tourism receipt, Accommodation, Food & Beverage, Shopping and Sightseeing, Entertainment & Gaming fell by 12%, 7%, 7% and 3% respectively.

Attractive yields, Ascendas merger and healthy gearing make ART attractive

SINGAPORE (Aug 2): Ascott Residence Trust, the provider of serviced residences, rental housing properties and other hospitality assets, reported improved 2Q19 results that came in line with the forecasts of most research houses.

In 2Q19, ART reported an 8% rise in both distribution income of $43.1 million and DPU of 1.98 cents from a year ago, which included a one-off realised exchange gain of $3.1 million compared to a realised exchange loss of $6.5 million a year ago. On a half-year basis, ART reported a DPU of 3.43 cents, up 8.0% from a year ago.

GDP slowdown and trade war take their toll on local hospitality sector

SINGAPORE (Aug 5): On July 30, CDL Hospitality Trusts, Far East Hospitality Trust, Ascott Residence Trust and ARA US Hospitality Trust released their 2QFY2019 results before the market opened. Performance was varied (see Table 1), with CDLHT’s distribution per stapled security (DPS) for 2QFY2019 falling 3.3% y-o-y to 2.07 cents, and FEHT’s DPS for the same period declining 9.9% y-o-y to 0.91 cents. All four have difference focuses.

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New business structure enables CapitaLand to deploy capital more effectively

SINGAPORE (July 16): CapitaLand completed its merger with Ascendas-Singbridge (ASB) on June 30. The group acquired all the shares in two ASB subsidiaries from Temasek for $6 billion, to create the largest diversified property group in Asia.

See: Singbridge in $11 bil deal to create Asia’s largest diversified real estate group

Third REIT merger in a year in Singapore creates Asia-Pacific's largest hospitality trust

(July 8): No sooner had CapitaLand and Ascendas Singbridge completed an $11 billion merger on July 1 than the enlarged group announced the merger between CapitaLand’s two hospitality trusts — Ascott Residence Trust (ART) and Ascendas Hospitality Trust (AHT) — on July 3. The combined real estate investment trust will own 88 properties with 16,000 units in 39 cities in 15 countries valued at $7.6 billion.

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Ascott Residence Trust gets bigger appetite for growth from merger

SINGAPORE (July 4): CapitaLand has wasted no time in merging Ascott Residence Trust (ART) with Ascendas Hospitality Trust (AHT) following the completion of the acquisition of Ascendas-Singbridge last week.

Ascott Residence Trust and Ascendas Hospitality Trust combining to form $7.6 bil behemoth

Ascott Residence Trust and Ascendas Hospitality Trust combining to form $7.6 bil behemoth

SINGAPORE (July 3): Ascott Residence Trust (ART) and Ascendas Hospitality Trust (AHT), both members of the CapitaLand group after its acquisition of Ascendas-Singbridge, are proposing a deal which will result in the combination of both entities into one.

See: CapitaLand and Ascendas-Singbridge in $11 bil deal to create Asia’s largest diversified real estate group

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