Ascott Residence Trust (ART) announced its 3Q14 results this morning. Revenue increased 8.9% YoY to S$93.7m but DPU fell 11.0% to 2.11 S cents, as 3Q13 included one-off items amounting to S$1.5m. Adjusting for this and a rights issue exercise, ART’s DPU would have increased 14.7% YoY.

For 9M14, revenue rose 12.7% to S$262.2m. DPU dipped 14.6%, (but jumped 7.9% after adjusting for one-off items and effects from a rights issue) to 6.04 S cents. This formed 75.5% of our FY14 forecasts, and was within our expectations.

We will provide more details after speaking with management. Maintain BUY on ART, but our S$1.33 fair value estimate is under review.

Source: OCBC Research - 6 Nov 2014