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Acro HTrust USD
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PhillipTan
Supreme |
07-Jun-2021 09:43
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Recommended BUY ARA US is the best proxy to ride on the US domestic travel recovery amid the anticipated surge in travel related bookings over the next 3 months driven by pent-up demand as the country reopens in time for the Jun-Aug summer holidays. According to STR, US hotels&rsquo occupancy rate reached 60.3% in the week 16-22 May, which is the best reading since the pandemic and just 15% below 2019. Average daily rate has also recovered to the highest point since COVID and is just 13.6% below 2019. We think the figures should improve further over the next 3 months. Shares of Hyatt Hotels and Marriot International, brand names that ARA US focuses on, have recovered to their February 2020 levels or even risen to pre-COVID levels in anticipation of travel recovery. We also observed that shares of most US hospitality REITs have made similar recoveries. ARA US currently trades at least 35% below its February 2020 level, and we see room for ARA US to catch up with peers. ARA US currently trades at FY21F yield of 4.7% and FY22F yield of 10.7%. Technical support is at $0.52 while our fundamental TP is at $0.69. Risk reward is attractive. YTD average daily trading volume for ARA US is low at 318,000 shares, investors may want to exercise corresponding prudence. |
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Kandee
Senior |
25-Feb-2021 09:51
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It is a potential recovery story. But isn' t the leverage too close for comfort.... " aggregate leverage of 48.2 per cent"
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Joelton
Supreme |
25-Feb-2021 09:42
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ARA H-Trust posts US$3m net property loss for H2 no distributable income
ARA US Hospitality Trust (ARA H-Trust) posted a net property loss of US$3 million and no distributable income for the second half ended Dec 31, 2020, after taking fixed costs into consideration.
This came as the Covid-19 pandemic " adversely impacted" the stapled group' s portfolio performance, with a significant drop in hotel occupancies and temporary hotel closures resulting in significant declines in revenue, the manager said on Wednesday in a bourse filing.
ARA H-Trust projected a net property income of US$31.1 million, a distributable income of US$21.1 million and distribution per stapled security of 3.72 US cents in its initial public offering (IPO) forecast.
Revenue for the six months ended December 2020 dropped 54.9 per cent to US$38.8 million, from US$86.1 million a year ago. Revenue was 60.3 per cent lower than its forecast of US$97.7 million. Average daily rate stood at US$102, missing the IPO forecast by 22.1 per cent.
Operating expenses narrowed to US$32 million, from US$55.4 million a year ago, as the manager implemented plans to substantially reduce operating costs, including the temporary suspension and consolidation of hotel operations, and comprehensive cost and labour reductions.
Total property value stood at US$686.9 million as at Dec 31, 2020, down 2.5 per cent from US$704.7 million a year ago. Valuation declined by 13.5 per cent on Covid-19 pandemic impact, partially offset by the acquisition of the Marriott portfolio in January 2020.
ARA H-Trust' s portfolio recorded occupancy of 41 per cent for FY2020, compared with its forecast of 77 per cent.
The manager said all 41 properties within the stapled group' s portfolio are open and generating positive cash flows from operations since July 2020.
ARA H-Trust remains in a secure financial and liquidity position to meet its operational needs and financial commitments, the manager said. As at end-December 2020, the stapled group had US$26.8 million cash on hand and aggregate leverage of 48.2 per cent. Lender banks also provided a further extension to a financial covenant waiver up to June 2021.
For the full year ended Dec 31, 2020, ARA H-Trust recorded a net property loss of US$5 million, compared with an IPO forecast of net property income of US$60.6 million. There was no distributable income, compared with an IPO forecast of US$40.8 million. Revenue for the full year stood at US$78.2 million, missing the IPO forecast of US$192.2 million by 59.3 per cent.
ARA H-Trust, which listed on the Singapore Exchange in May 2019, is a stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a business trust.
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Yooooz
Member |
10-Jan-2021 17:03
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Optimisic on recovery for ARA US Hospitality Trust. ' Ready to fly' once travel resumes: DBS on ARA US Hospitality Trust | The Edge Singapore |
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SmallSmall
Supreme |
25-Nov-2020 10:32
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Not wrong also. RSI a bit stretch. Buy on weakness if any :)
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eric998
Supreme |
25-Nov-2020 10:20
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RSI a little high.. can let it cool down more?
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SmallSmall
Supreme |
25-Nov-2020 10:17
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Current price $0.455.....started to move the last few days. Buy this stock for recovery play. IPO US$0.88. NAV US$0.7694 As the world reccovers, all badly hit will recover too. Blink blink easily US$0.60 at least |
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Yooooz
Member |
10-Nov-2020 00:53
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One of Hospitality stock to look out for. | ||||
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Yooooz
Member |
24-Sep-2020 21:55
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Update from investor relations. Looks like results in coming quarter will show imprownt. Since our last update in August 2020, we continue to observe gradual improvement in our hotel portfolio' s performance in the past few months which are primarily driven by an increase in pent-up leisure demand. Traditional drive-to markets, where our portfolio of hotels are located, are also highly favored by leisure travellers due to their preference to drive in lieu of air travel. Our portfolio' s recovery trend is also closely mirroring that of the U.S. hotel market. Concurrently, our U.S. based team continues to leverage on the flexible cost structure of the portfolio' s select-service hotels by reducing operating costs and postponing non-essential spending. We are targeting to release our business and operational updates for 3Q2020 in the first week of November 2020 and you may refer to the update for further details on our portfolio' s performance. It will be made available on our corporate website and SGXNet. |
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Observers
Elite |
19-Jul-2020 22:15
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CDL one still got, I think half iirc.
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john_ric
Supreme |
19-Jul-2020 15:08
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other H-trusts H-reits woud follow suit - no div. |
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Joelton
Supreme |
18-Jul-2020 12:45
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No distributable income for H1 2020, ARA H-Trust says
ARA US Hospitality Trust (ARA H-Trust) is expected to report a net property loss and no distributable income for the first six months of 2020, it said on Friday.
" The unprecedented decline in hotel occupancies and temporary hotel closures as a result of the impact of the Covid-19 pandemic since March 2020 has resulted in a significant decline in gross revenues," the trust managers said in a filing to the Singapore Exchange.
Although swift actions were taken to reduce operating cost by leveraging the select-service hotels&rsquo flexible cost structure, ARA H-Trust continued to incur fixed costs. A net property loss is expected based on preliminary estimates, the trust managers said.
That said, the trust was able to maintain positive gross operating profit in the first half.
The trust managers said they will monitor the situation: " ARA H-Trust continues to be in a secure financial position and has adequate liquidity to meet its operational needs and financial commitments to navigate through the crisis. The managers will continue to exercise caution and prudence in their capital and cash flow management."
ARA H-Trust will report its first half results on Aug 5, before the market opens.
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Joelton
Supreme |
09-May-2020 13:46
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ARA H-Trust Q1 profit misses IPO forecast by 47.8% at US$8.1mSAT, MAY 09, 2020 - 5:50 AM Stapled group also posts gross revenue of US$31.7m and net property income of US$3.6m for the three months ended March 31 Singapore ARA US Hospitality Trust (ARA H-Trust) posted a gross operating profit of US$8.1 million for its first quarter, falling 47.8 per cent short of its initial public offering (IPO) forecast of US$15.5 million, the trust' s managers said in a business update on Friday. The... https://www.businesstimes.com.sg/companies-markets/ara-h-trust-q1-profit-misses-ipo-forecast-by-478-at-us81m-0 |
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Joelton
Supreme |
18-Apr-2020 13:29
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ARA H-Trust temporarily shuts two-thirds of hotels, slashes workforce amid pandemicFRI, APR 17, 2020 - 9:08 AM | UPDATED FRI, APR 17, 2020 - 6:02 PM
IN response to the acceleration of the coronavirus pandemic, ARA US Hospitality Trust (ARA H-Trust) has turned to a series of measures including the temporary closures of about two-thirds of its hotels, slashing its workforce and pay cuts for senior managers. The stapled group shut 15 hotels during the last week of March as well as 13 other hotels in the first week of April, due to their low occupancy rates, its managers said on Thursday night in an investor update. ARA H-Trust' s portfolio comprises 41 upscale select-service hotels with a total of 5,340 rooms across 22 states in the US, according to its latest annual report filed on April 13. Meanwhile, the trust has also " consolidated operations" at three hotels to other owned assets in the market, the managers said on Thursday. They added that they have developed a recovery analysis tool to monitor key market indicators to establish re-opening dates for the hotels. As for property management, " comprehensive" cost-cutting measures in this area include slashing the workforce by 70 per cent and a " drastic" reduction in working hours for the remaining staff. All contract labour in property management will also be eliminated, all senior managers' salaries are lowered by 20 per cent and managers are required to cover four shifts per week within 50 hours per week over six days. ARA H-Trust has shut down courtesy shuttles, fitness centres and pools. Accounts payable will be extended to 90 days. In terms of asset management, the cost-cutting measures include a review of all services contracts and a reduction in services or schedules. Property managers and franchisors are also providing fee concessions and waivers. The trust' s managers have also required deferrals and waivers for ground rent and tax payment. All property improvement plans, asset enhancement initiatives and other non-essential capital expenditures will be deferred for a year. These moves come amid the plunge in hotel demand and a halt to travel, following the surge in Covid-19 cases in the US and more drastic restrictions by the authorities. ARA H-Trust' s portfolio performance dived in March 2020, in line with the overall US market trend, the trust managers said. Occupancy shrank to 39.6 per cent last month, compared to 66.5 per cent in February and 60.1 per cent in January. Revenue per available room fell to US$46, versus US$78 in February and US$68 in January. " We expect market conditions and performance to worsen before getting better in the coming months," the trust managers said on Thursday. The managers first announced in March that they had initiated cost controls by cutting labour cost hours and staffing, shutting certain facilities and amenities and reviewing all operating contracts. Stapled securities of ARA H-Trust were flat at US$0.46 as at 10.07am on Friday. The US has reported 670,353 confirmed coronavirus cases - the highest number in the world - with 11,477 deaths in the hardest hit New York City. https://www.businesstimes.com.sg/companies-markets/ara-h-trust-temporarily-shuts-two-thirds-of-hotels-slashes-workforce-amid-pandemic |
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SmallSmall
Supreme |
16-Apr-2020 11:36
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ARA US Hospitality Trust (ARAUS SP) A Hotelier&rsquo s Nightmare, But Stay Invested With the escalation of COVID-19 in the US, ARAUS has seen its occupancy slashed to one-third the level last year. The portfolio is facing significant cancellations and declining new reservations. Management has tabled plans to trim staff, cut services, and consolidate operations to conserve cash. Looking beyond 2020, ARAUS will still offer an attractive 2021 yield of 14%, despite our earnings cut (and 49% ytd price correction). Maintain BUY on valuation grounds with a new target price of US$0.70.WHAT&rsquo S NEW COVID-19 pandemic: Impact on US hotels. The US has become the new epicenter of the coronavirus pandemic ever since a national emergency was declared on 13 Mar 20. We spoke with management to gain insights into their operating strategies (ie sales and marketing, cost management and cash preservation) and outlook, amid reduced travel demand. Due to fluidity of the situation, several US-listed lodging REITs have also withdrawn their prior 2020 guidance. Slower forward bookings and increased cancellations growing list of companies instituting travel freezes. Along with the entire US hotel industry, ARAUS has had significant booking cancelations, which drops each month out (eg May, June, July), as travellers are unsure as to how long the situation will last. Group travel (c.16% of 2018 occupied room-nights) was quick in seeing cancellations due to the need for social-distancing. Corporates (transient and group) also started to see cancellations, as companies observe &ldquo duty of care&rdquo provisions for employees to shield themselves from potential lawsuits and liability. Overall portfolio occupancy in late-March (eg 20s%) was about one-third the usual level, as compared to that in the same period last year. Management expects travel to slow substantially, with various federal/state efforts to flatten the curve of COVID-19 cases. Due to the timing of the outbreak, the impact would be felt most acutely in the second and (possibly) third quarters of 2020. These are seasonally strong periods, and made up 27%/26.7% of room-nights sold in 2019 respectively. COVID-19 survival plan. Management has been consolidating operations, reallocating labour working-hours and pausing sales-and-marketing campaigns. Discounting ADRs will not be appropriate, as the group has to maintain their positioning vs economy hotels, and strive for RevPAR to at least break even. Management is making targeted efforts to raise occupancy by attracting other target segments (eg travelling doctors and nurses), which may see improved demand in certain locations. KEY FINANCIALS Year to 31 Dec (S$m) 2018 2019*2020F2021F2022FNet turnover n.a. 115106167180EBITDA n.a. 29244449Operating profit n.a. 1522125Net profit (rep./act.) n.a. 11(10)811Net profit (adj.) n.a. 11(10)811EPU (S$ cent) n.a. 1.9(1.7)1.41.9DPU (S$ cent) n.a. 4.22.56.26.4PE (x) n.a. 23.6n.m.32.623.5P/B (x) n.a. 0.50.50.50.5DPU Yld (%) n.a. 9.55.713.914.3Net margin (%) n.a. 9.3(9.0)4.76.1Net debt/(cash) to equity (%) n.a. 40.243.840.540.7Interest cover (x) n.a. 4.82.03.74.1ROE (%) n.a. n.a.n.a.1.62.2Consensus DPU (S$ cent) n.a. n.a.4.47.47.5UOBKH/Consensus (x) - -0.580.840.85*Period 9 May-31 Dec 19 Source: Ascott Residence Trust, Bloomberg, UOB Kay Hian A trimmed-down staffing model with occupancy (%) to see breakeven at 25-30% levels. The group&rsquo s greatest cost component is labour. Since none of its hotels are unionised, the group has flexibility in reducing labour hours and staffing (eg housekeeping) along with reduced occupancy. Due to the crisis, management has cut back on many of its typical services (eg complimentary buffet breakfasts, shuttle van services), and reduced daily house-keeping to minimise touchpoints with guests and their belongings. The staffing model has also been trimmed down, and managers are required to take on shifts. At this modified service level, management guided that their breakeven occupancy is closer to the 25-30% level depending on location and the market (vs 45% level during normal times). A quick rebound for &ldquo transient&rdquo travel at upscale price point. In terms of recovery, management opined that transient travel will rebound the sharpest, benefitting select-service segments, while group demand will be the slowest to ramp up. They also expect travel in smaller cities to rebound quicker due to the absence of COVID-19 cases, while gateway cities (eg New York) may take a longer time to regain confidence. Cash conservation efforts. ARAUS had US$45.2m on hand at end-19, and no scheduled debt maturities in 2020 (with earliest loan maturity in Jan 23). Management is conserving cash by: a) reducing operating expenses, b) deferring and extending payments, and c) allotting reduced capex (ie S$7.1m from listing date to end-Dec 19) to only critical items. As a precautionary measure, management has also drawn down a revolving credit facility. There are also various federal and state government stimulus programmes which come in the form of debt to provide for working capital. ARAUS has so far not announced any changes to its distribution policy, which is to distribute 100% of its distributable income in 2020 (and at least 90% thereafter). However, many of its US lodging peers (eg Apple Hospitality REIT, Pebblebrook Hotel Trust, Park Hotels & Resorts, and Ryman Hospitality Properties) have reduced/suspended their distribution plans to conserve cash. EARNINGS REVISION/RISK We slashed our 2020F, 2021F and 2022F DPUs by 65%, 17%, and 17% respectively due to dampened travel demand from: a) COVID-19 travel restrictions, and b) weaker real GDP growth outlook. For 2020F, we expect at least six months of subdued occupancies before a recovery in 4Q20. The UOB Global Economic and Market Research team is also expecting US real GDP growth to contract by 4.1% for 2020. Stay invested, look to 2021 yield of 14%. Our base case assumes occupancies stay subdued (eg 20s%) for at least 2Q-3Q20, before recovering to the 60th/90th percentiles of pre-COVID 2019 trading levels in 4Q20 and 2021 respectively. We also factor in softer room rates with 5%/3.5% yoy declines in 2020/21. Despite the earnings cuts, we can still expect a 2021 DPU yield of 14%. VALUATION/RECOMMENDATION Maintain BUY on valuation grounds, but lower target price to US$0.70 (from US$1.25). Our valuation is based on DDM (required rate of return: 9.5%, terminal growth: 1.0%). To account for the higher risk-profiles of US hotels, we have ascribed a raised beta of 1.5x (from 1.0x). Consequently, our cost of equity has increased by 275bp to 9.5%. We raised our beta to account for a: a) more closely aligned beta-risk level with other US-listed lodging REITs and b) lack of master lease agreements guaranteeing fixed base rents for ARAUS hotels during this period of unprecedented uncertainty. SHARE PRICE CATALYST Lifting of travel restrictions, and reduction in infection rates of COVID-19 in the US. |
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oreocookie
Senior |
15-Apr-2020 22:37
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is it why Straits Trading is also rebounding strongly? | ||||
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SmallSmall
Supreme |
15-Apr-2020 11:50
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Should hit US$0.55 easily based on retarcement theory ...:) | ||||
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SmallSmall
Supreme |
14-Apr-2020 11:38
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Enjoy the rebound .... :) | ||||
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uiop1223
Supreme |
09-Mar-2020 14:06
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Price collapse today. | ||||
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chengwh1
Elite |
06-Nov-2019 15:25
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Results released this morning,... https://shentonwire.net/2019/11/06/ara-us-hospitality-trust-reports-3q19-net-property-income-missed-ipo-forecasts/?mc_cid=a932310ea1& mc_eid=0a3711f528 A notable excerpt : For the 9 May to 30 September period, the revenue per available room (RevPAR) came in at US$101, or 5.1 percent below the IPO forecast, mainly on new supply impact in some markets, the REIT said. The RevPAR performance is expected to improve gradually as new supply is absorbed and introductory rates taper off, the REIT said. The link researched in the previous post looks to be accurate. |
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