Thursday, May 05, 2022

Ascott Residence Trust – Pick-up in demand upon relaxation


  • No financials provided in this business update. 1Q22 RevPAU grew 22% YoY, currently at 65% of pre-pandemic levels, on the back of higher ADRs and occupancy.

  • RevPAU declined 23% QoQ due to tightening of restrictions in Jan-Feb22 in several of ART's key markets due to resurgence of Omicron cases, seasonal lull, as well as three properties transitioning out of government block bookings.

  • Maintain ACCUMULATE, DDM-TP raised from S$1.23 to S$1.24. FY22e-26e DPUs raised by 0.3-0.9% as we pencil in acquisition of Japan portfolio of rental housing and student accommodation assets, resulting in a slight increase in our DDM-TP. Catalysts include faster than anticipated recovery, opportunistic divestments and acquisitions of extended stay assets.

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