Singapore Stock Market News

Ascott Residence Trust - Forex dampener

StockFanatic
Publish date: Wed, 24 Oct 2012, 11:24 AM
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Ascott Residence Trust (ART) 3Q earnings growth was decent, but we expected a bigger boost from the London Olympics. UK RevPAU was resilient largely on the back of strong room rates post AEI. Revpau growth was again eroded by forex movements, the worst since 4Q08.

3Q/9M12 DPU met expectations at 25%/77% of our FY12 forecast and 26%/80% of consensus number. We adjust FY12-14 DPUs after factoring in the Hamburg acquisition and raise DDM-based target price for a lower discount rate of 8.2% (previously 8.5%). We remain Neutral given the lack of catalysts.
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