$Ascott Trust(HMN.SI)$ is a great recovery play as countries around the world are opening up and global travel picks up.
It is the largest Hospitality Trust in Asia Pacific with an asset value of SGD7.7 Billion as at 31 December 2021.
Ascott Trust's International portfolio comprises of 95 properties with more than 17000 units in 44 cities across 15 countries in Asia Pacific, Europe and the USA.
Ascott Trust is part of $CapitaLandInves(9CI.SI)$ which is owned by Temasek Holdings.
In the 1Q 2022 highlights, Revenue Per Unit (RevPAU) grew 22% year on year. However RevPAU quarter on quarter declined 23% due to tightening of restrictions in January to February 2022 in several countries due to increase of Omicron cases.
Ascott Trust noted increasing demand from international travellers in France, UK and US accounting for 40% of business at UK properties in 1Q2022. Corporate demand is also returning to Australia, France and Singapore.
Ascott Trust also acquired 4 rental housing and 1 student accommodation in Japan for SGD125 million in March 2022. Occupancy at Japan rental housing assets and student accommodation were above 95% and 100% in 1Q21. This acquisition is dividend accretive.
According to financial analysts from DBS Research, OCBC Investments, UOB Kay Hian , Ascott Trust is a Buy with Target Price ranging from 1.22 to 1.35.
The current dividend yield for Ascott Trust is 3.76%.
Ascott has a well spread Master Lease Expiry of 7 years. It has a gearing ratio of 37.8%. It has strong liquidity reserves of SGD880 million of which SGD 300 million is cash on hand and SGD580 million available on credit facilities.
I am bullish on $Ascott Trust(HMN.SI)$ as it is profitable, well managed, low gearing ratio and most importantly it has a strong sponsor. The best part is of course collecting dividends on a regular basis and watching $Ascott Trust(HMN.SI)$ grow exponentially long term.
Go Long Go Strong Go Ascott Trust!
@TigerEvents - Recommend a SG stock
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Good read