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Latest Forum Topics / Acro HTrust USD    Last:0.2 --  Post Reply
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ayy002
Senior
25-Oct-2024 16:53     
 
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 Alert Admin 		hopeless
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Alignment
Elite
11-Aug-2024 13:11     
 
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 Alert Admin 		It was until recently, when they sold the management company to Gordon Tang.

Perhaps they saw what happened with Sabana and decided to get out of managing SREITs.
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luckyguy3
Master
08-Aug-2024 22:32     
 
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 Alert Admin 		This one under ESR right?

Joelton      ( Date: 08-Aug-2024 10:33) Posted:

ARA H-Trust H1 DPS falls 50.2% to US$0.00747
Its manager attributes this decline to higher financing costs as a result of interest rates maturing and borrowing costs rising
 
ARA US Hospitality Trust (ARA H-Trust) posted a distribution per stapled security (DPS) of US$0.00747 for the first half ended Jun 30, down 50.2 per cent from US$0.01501 in the corresponding year-ago period.
 
Distributable income fell 50.1 per cent to US$4.3 million in H1 2024, from US$8.7 million in the same period last year.
 
On Wednesday (Aug 7), its manager attributed this decline to higher financing costs as a result of interest rates maturing and borrowing costs rising.
 
Some US$224 million worth of hedges that were entered into in 2019 had matured in February this year, and floating interest rates set in. The trust also made recent hedges amounting to US$119 million amid rising interest rates, added the manager.
 
The distribution will be paid out on Sept 27 after the record date of Aug 19.
 
Revenue inched down 2.4 per cent for the half-year period to US$83.9 million, from US$86 million in H1 2023. As a result, gross operating profit was down 3.3 per cent to US$29.6 million for H1 2024, from US$30.7 million the previous year. Meanwhile, net property income (NPI) decreased 4.4 per cent on the year to US$21 million, from US$22 million previously.
 
This decline was mainly due to interruptions from asset enhancement initiatives projects at four hotels &ndash Hyatt Place Mystic, Hyatt Place Rancho Cordova, Hyatt Place Omaha and Hyatt Place Secaucus &ndash said the manager.
 
The fall in revenue was also underpinned by disposals of two other hotels in September 2023 and March 2024, it added. As a result, the portfolio&rsquo s average occupancy declined 1.6 percentage points on the year to 67.3 per cent, while revenue per available room fell 1.3 per cent year on year to US$93.
 
Excluding contributions from the six hotels and on a same-store basis, revenue would have risen 2.8 per cent on the year. Meanwhile, gross operating profit and NPI would have also increased by 2.4 per cent and 2.2 per cent year on year, respectively.
 
New sponsors of Ara H-Trust, Cromwell E-Reit unlikely to quickly lift their depressed valuations
 
BT Mark to Market: ARA H-Trust, Cromwell E-Reit get new sponsors (Ep 44)
The trust manager pointed out that rising interest rates and persistent inflation has weighed on price-sensitive consumers, resulting in lower hotel demand by the lower and middle-income households.
 
It also noted that the strong US dollar has led to more people travelling out of the country.
 
To mitigate the impact of rising rates, the trust said that it intends to use net proceeds from the proposed sale of two hotel assets to pare down bank borrowings and improve the trust&rsquo s gearing ratio, as well as increase its debt headroom.
 
In May, the manager announced its plan to sell Hyatt House Philadelphia Plymouth Meeting for US$11.3 million and Hyatt House Shelton for US$19.7 million.
 
As at Jun 30, ARA H-Trust&rsquo s aggregate leverage stood at 43.5 per cent. The manager expects average leverage to fall to 42.9 per cent after repaying its debt.
 
Looking forward, Lee Jin Yong, chief executive officer of the managers, is positive on the future prospects of the hospitality industry.
 
&ldquo Although occupancy decreased with the waning of leisure demand, we are seeing improvements in group and business travel activity,&rdquo he said. &ldquo Barring unforeseen circumstances, we remain cautiously optimistic that our operating metrics will improve, driven in particular by the recently renovated hotels.&rdquo
 
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust and ARA US Hospitality Management Trust.
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Joelton
Supreme
08-Aug-2024 10:33     
 
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 Alert Admin
ARA H-Trust H1 DPS falls 50.2% to US$0.00747
Its manager attributes this decline to higher financing costs as a result of interest rates maturing and borrowing costs rising
 
ARA US Hospitality Trust (ARA H-Trust) posted a distribution per stapled security (DPS) of US$0.00747 for the first half ended Jun 30, down 50.2 per cent from US$0.01501 in the corresponding year-ago period.
 
Distributable income fell 50.1 per cent to US$4.3 million in H1 2024, from US$8.7 million in the same period last year.
 
On Wednesday (Aug 7), its manager attributed this decline to higher financing costs as a result of interest rates maturing and borrowing costs rising.
 
Some US$224 million worth of hedges that were entered into in 2019 had matured in February this year, and floating interest rates set in. The trust also made recent hedges amounting to US$119 million amid rising interest rates, added the manager.
 
The distribution will be paid out on Sept 27 after the record date of Aug 19.
 
Revenue inched down 2.4 per cent for the half-year period to US$83.9 million, from US$86 million in H1 2023. As a result, gross operating profit was down 3.3 per cent to US$29.6 million for H1 2024, from US$30.7 million the previous year. Meanwhile, net property income (NPI) decreased 4.4 per cent on the year to US$21 million, from US$22 million previously.
 
This decline was mainly due to interruptions from asset enhancement initiatives projects at four hotels &ndash Hyatt Place Mystic, Hyatt Place Rancho Cordova, Hyatt Place Omaha and Hyatt Place Secaucus &ndash said the manager.
 
The fall in revenue was also underpinned by disposals of two other hotels in September 2023 and March 2024, it added. As a result, the portfolio&rsquo s average occupancy declined 1.6 percentage points on the year to 67.3 per cent, while revenue per available room fell 1.3 per cent year on year to US$93.
 
Excluding contributions from the six hotels and on a same-store basis, revenue would have risen 2.8 per cent on the year. Meanwhile, gross operating profit and NPI would have also increased by 2.4 per cent and 2.2 per cent year on year, respectively.
 
New sponsors of Ara H-Trust, Cromwell E-Reit unlikely to quickly lift their depressed valuations
 
BT Mark to Market: ARA H-Trust, Cromwell E-Reit get new sponsors (Ep 44)
The trust manager pointed out that rising interest rates and persistent inflation has weighed on price-sensitive consumers, resulting in lower hotel demand by the lower and middle-income households.
 
It also noted that the strong US dollar has led to more people travelling out of the country.
 
To mitigate the impact of rising rates, the trust said that it intends to use net proceeds from the proposed sale of two hotel assets to pare down bank borrowings and improve the trust&rsquo s gearing ratio, as well as increase its debt headroom.
 
In May, the manager announced its plan to sell Hyatt House Philadelphia Plymouth Meeting for US$11.3 million and Hyatt House Shelton for US$19.7 million.
 
As at Jun 30, ARA H-Trust&rsquo s aggregate leverage stood at 43.5 per cent. The manager expects average leverage to fall to 42.9 per cent after repaying its debt.
 
Looking forward, Lee Jin Yong, chief executive officer of the managers, is positive on the future prospects of the hospitality industry.
 
&ldquo Although occupancy decreased with the waning of leisure demand, we are seeing improvements in group and business travel activity,&rdquo he said. &ldquo Barring unforeseen circumstances, we remain cautiously optimistic that our operating metrics will improve, driven in particular by the recently renovated hotels.&rdquo
 
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust and ARA US Hospitality Management Trust.
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Alignment
Elite
08-Jun-2024 21:04     
 
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 Alert Admin 		And that bump has now gone. Seems a weird deal. Why would Gordon Tang want to own (and in particular pay for) a REIT manager, especially with the Sabana precedent?
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Alignment
Elite
28-May-2024 12:45     
 
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 Alert Admin 		Share price up 6% which is nice for unitholders.

 
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Joelton
Supreme
28-May-2024 10:57     
 
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Property tycoon Gordon Tang and family to fully acquire ARA H-Trust&rsquo s managers, buy 19% stake in stapled group
Tang-owned Acrophyte Asset Management will then become the stapled group&rsquo s new sponsor
 
ARA Asset Management, owner of ARA US Hospitality Trust : XZL 0%&rsquo s (ARA H-Trust) sponsor, has agreed to sell the trust&rsquo s managers to Acrophyte Asset Management, an entity wholly owned by property tycoon Gordon Tang and his wife Celine, the trust&rsquo s managers announced on Monday (May 27).
 
Stapled group ARA H-Trust comprises ARA US Hospitality Property Trust, which is managed by ARA Trust Management, and ARA US Hospitality Management Trust, which has a trustee-manager called ARA Business Trust Management (USH).
 
Acrophyte Asset Management intends to acquire all 1.5 million shares in the capital of ARA Trust Management and all 50,000 shares in the capital of USH.
 
Acrophyte Asset Management will then become the stapled group&rsquo s new sponsor.
 
In addition, ARA H-Trust&rsquo s sponsor, ARA Real Estate Investors 23, is proposing to sell 110.2 million stapled securities of the trust to Acrophyte Limited, an entity wholly owned by Tang Jialei and Tang Jialin, the children of Gordon and Celine Tang.
 
This translates to a 19 per cent stake in ARA-H Trust. The purchase increases the Tangs&rsquo holding in ARA H-Trust to 28.3 per cent.
 
Acrophyte has been a prominent real estate player since the 1990s, noted ARA H-Trust&rsquo s managers in a presentation deck. The proposed transaction marks Acrophyte&rsquo s first venture into Reit management.
 
Acrophyte is affiliated with real estate player SingHaiyi, which was formerly listed on the Singapore Exchange. In 2023, Gordon and Celine Tang took construction and property group Chip Eng Seng Corporation private.
 
ARA H-Trust&rsquo s managers said the proposed transactions are estimated to be completed in the second to third quarter of 2024, subject to the fulfilment of certain conditions precedent.
 
Lee Jin Yong will remain as chief executive of the managers following the proposed transactions, the managers said.
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Alignment
Elite
26-May-2024 13:11     
 
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 Alert Admin 		  Good points.Clearly if they can continue to sell assets at only a slight discount to NAV in extremis they should sell all their assets, liquidate the company and return double the current share price to shareholders. That way everyone who invested after April 2020 would be a winner, and also would represent a faster increase in value to shareholders than any alternative option by far.

DPU is definitely going to take a hit either way given the company remains overleveraged. That is simply a consequence of deleveraging. The question is how much. Factoring in the higher cost of interest you mention, I get to around 10% DPU yield down from 11% in my previous post, which is still pretty attractive if it is the trough figure..

doremifatso      ( Date: 26-May-2024 07:28) Posted:

The disposal would be slightly dilutive if it was completed on 1 Jan 2023. But in 2024 after the expiry of their fixed rate loans, the average interest cost of their debt has risen significantly to 5.7%. I think the disposal is accretive based on the current situation. Many investors have been pushing for asset sales because the share price is 60% discount to NAV and the interest cost is so high now. Such disposals are verh good news but they need to sell more to pare down debt or else DPU will take a big hit.

Alignment      ( Date: 23-May-2024 23:45) Posted:

Even with the dilution from this deal the DPU yield is still 11.5%.

So the trade-off is a 4.4% dilution in yield for a 2% fall in leverage.

So if an acceptable target leverage is, say, 37.5%, then they would need to do one more deal of this size to stablise the b/s. Another 4.4% dilution to DPU would mean a DPU yield of 11% based off the current share price. That would seem to be a very attractive long term DPU yield.
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doremifatso
Senior
26-May-2024 07:28     
 
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 Alert Admin 		The disposal would be slightly dilutive if it was completed on 1 Jan 2023. But in 2024 after the expiry of their fixed rate loans, the average interest cost of their debt has risen significantly to 5.7%. I think the disposal is accretive based on the current situation. Many investors have been pushing for asset sales because the share price is 60% discount to NAV and the interest cost is so high now. Such disposals are verh good news but they need to sell more to pare down debt or else DPU will take a big hit.

Alignment      ( Date: 23-May-2024 23:45) Posted:

Even with the dilution from this deal the DPU yield is still 11.5%.

So the trade-off is a 4.4% dilution in yield for a 2% fall in leverage.

So if an acceptable target leverage is, say, 37.5%, then they would need to do one more deal of this size to stablise the b/s. Another 4.4% dilution to DPU would mean a DPU yield of 11% based off the current share price. That would seem to be a very attractive long term DPU yield.
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Alignment
Elite
23-May-2024 23:45     
 
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 Alert Admin 		Even with the dilution from this deal the DPU yield is still 11.5%.

So the trade-off is a 4.4% dilution in yield for a 2% fall in leverage.

So if an acceptable target leverage is, say, 37.5%, then they would need to do one more deal of this size to stablise the b/s. Another 4.4% dilution to DPU would mean a DPU yield of 11% based off the current share price. That would seem to be a very attractive long term DPU yield.
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Joelton
Supreme
10-May-2024 10:26     
 
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 Alert Admin
ARA H-Trust to sell 2 Hyatt House hotels for US$31 million
Although being DPS and NAV dilutive, the proposed sale will provide additional debt headroom
 
ARA US Hospitality Trust (ARA H-Trust) has proposed selling two Hyatt House hotels to a New Jersey-based hotel management company, GHM Properties, for a total consideration of US$31 million, slightly below the total valuation.
 
The managers said that ARA H-Trust has entered into two conditional purchase and sale agreements, through its indirectly wholly owned subsidiary ARA USH Chicago, on Thursday (May 9).
 
Both properties are extended-stay hotels on freehold land located in Connecticut and Pennsylvania, respectively.
 
While the sale consideration for Hyatt House Philadelphia Plymouth Meeting represents a 3.4 per cent discount to its valuation, the total consideration represents a 1.3 per cent discount to the independent valuation of both properties, which stood at US$31.4 million as at Dec 31, 2023.
 
On a pro forma basis, assuming the proposed sale was completed on Jan 1, 2023, distribution per stapled security (DPS) would be dragged down 4.4 per cent to US$0.03278, from US$0.0343. If it was completed on Dec 31, 2023, net asset value (NAV) would be 0.7 per cent lower at US$424.4 million, compared with US$427.6 million.
 
The managers said that despite the proposed sale being slightly dilutive to the DPS and NAV on a historical pro forma basis, it would provide ARA H-Trust with additional debt headroom to embark on its long-term, accretive growth strategy. 
 
The managers said they intend to use the net proceeds to pare down existing bank borrowings to improve ARA H-Trust&rsquo s aggregate leverage ratio, and/or for general working capital requirements.
 
&ldquo The proceeds may also be redeployed to acquire accretive, higher yield properties, should such opportunities be identified in time,&rdquo they added.
 
The trust&rsquo s aggregate leverage would be reduced to 39.6 per cent from 41.5 per cent, assuming the proposed divestment was completed on Dec 31, 2023, and the net proceeds were used to repay bank borrowings.
 
The managers added that Hyatt House Philadelphia, ranking in the bottom quartile of ARA H-Trust&rsquo s portfolio in terms of contribution to both valuation and net property income, is a non-core asset with outsized capital expenditure needs. Its divestment is in line with the managers&rsquo proactive portfolio optimisation strategy to divest non-core assets at or near valuation.
 
While the other property, Hyatt House Shelton, is a performing asset, the managers noted a limited upside for its future revenue growth and value appreciation. This is on top of the hotel&rsquo s stone facade exterior and a subterranean car park, which require outsized maintenance.
 
&ldquo Such capital investment does not provide a return on investment,&rdquo said the managers, adding that ARA H-Trust has spent US$2 million on total capital investments for the hotel to date.
 
&ldquo Completion of the divestment of each of the properties is expected to be in the third quarter of 2024,&rdquo the managers noted.
 
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a business trust. Its portfolio currently comprises 36 upscale select-service hotels across 18 states in the US.
 
In its latest business update, its first-quarter net property income rose marginally to US$6.4 million, with portfolio occupancy falling 2.2 percentage points to 59.5 per cent. 
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Joelton
Supreme
04-May-2024 16:47     
 
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 Alert Admin
ARA H-Trust Q1 net property income up marginally to US$6.4 million
But its portfolio occupancy falls on softer demand due to weather conditions, a shift in holiday dates, the strong US dollar and upgrading efforts
 
ARA US Hospitality Trust (ARA H-Trust) posted a net property income (NPI) of US$6.4 million for its first quarter ended Mar 31, 2024, marking a 1.1 per cent rise from the corresponding year-earlier period. 
 
Gross revenue was a marginal 0.2 per cent higher at US$36.2 million for the fiscal quarter, while gross operating profit grew 2.1 per cent to US$10.7 million, from US$10.5 million. 
 
The hospitality trust&rsquo s portfolio was affected by disruptions to demand from weather and the earlier Easter holiday, with occupancy falling 2.2 percentage points to 59.5 per cent, its managers said in a business update on Friday (May 3). 
 
The strong US dollar stimulated increased outbound international travel, softening domestic leisure demand, they added.
 
Furthermore, the occupancy decline was exacerbated by asset enhancement improvement (AEI) projects at four properties &ndash Hyatt Place Mystic, Hyatt Place Sacramento Rancho Cordova, Hyatt Place Omaha and Hyatt Place Secaucus &ndash during the quarter.
 
ARA H-Trust is a stapled group comprising ARA US Hospitality Property Trust, a real estate investment trust, and ARA US Hospitality Management Trust, a business trust.
 
&ldquo We have managed to deliver a stable operational performance across all indicators in Q1 2024, demonstrating the strength of our assets amid the challenging environment and demand displacement from the AEI projects at some of our top hotels,&rdquo said Lee Jin Yong, chief executive officer of the managers. 
 
ARA H-Trust&rsquo s slightly stronger performance this quarter came against a backdrop of the US lodging market&rsquo s continued recovery. The US economy remained resilient, despite persistently high interest rates and elevated inflation.
 
The managers believe that the outlook for the rest of the year remains positive, as consumer spending &ndash supported by a strong job market &ndash is the primary driver for economic growth. This is even as it slows down, reflecting normalising performance.
 
US hotel occupancy is forecast to continue growing, driven by continued recovery in business and group travel, it noted.
 
&ldquo Upon completion of the AEI projects, those hotels disrupted in Q1 2024 will be in a better position to drive revenues and profits,&rdquo said Lee.
 
The trust posted a marginal increase in the average daily rate, up 0.4 per cent, but this was offset by lower occupancy. At US$78, its revenue per available room was down 3.1 per cent on year in Q1.
 
Its managers, providing an update on its portfolio optimisation strategy, said they had on Mar 26 this year completed the sale of Hyatt Place Pittsburgh Airport, a non-core asset, for US$7.7 million.
 
The net sale proceeds were used to pare down existing bank borrowings, to improve the portfolio&rsquo s aggregate leverage ratio and increase debt headroom.
 
As at Mar 31, 2024, ARA H-Trust had approximately US$33.5 million in cash and cash equivalents, which included the sale proceeds of US$7.7 million and reserves earmarked for upcoming capital expenditures.
 
The managers added that as the interest rate hedges entered during the initial public offering matured in February 2024, ARA H-Trust has been progressively hedging its outstanding debts.
 
To date, 34 per cent of its loan portfolio is hedged to fixed rates.
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Alignment
Elite
27-Mar-2024 18:18     
 
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 Alert Admin 		https://www.dealstreetasia.com/stories/esr-divesting-ara-private-funds-387179

ESR wants to keep the manager of this fund because it knows it is going to hit a home run here.
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Alignment
Elite
02-Mar-2024 21:52     
 
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 Alert Admin 		Credit where credit is due. DBS analyst called this one well, although I would argue that it was obvious given how cheap the share price was. Dividend projected to increase this year even though they are assuming higher interest rates (which may not be the case).

https://www.dbs.com/insightsdirect/company/TR5068339118?source=aics& sourceid=tmp& subsource=
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Joelton
Supreme
23-Feb-2024 16:06     
 
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 Alert Admin
ARA H-Trust&rsquo s H2 DPS rises 18.6% to US$0.01929
 
ARA US Hospitality Trust&rsquo s (ARA H-Trust) distribution per stapled security (DPS) for the half year ended December 2023 was up 18.6 per cent to US$0.01929, from US$0.01627 in H2 FY2022.
 
The distribution will be paid out on Mar 28, 2024, after the record date on Mar 1, reported the stapled group&rsquo s managers on Thursday (Feb 22).
 
Revenue rose 2 per cent year on year to US$89.5 million, while net property income (NPI) climbed 26.4 per cent to US$25.7 million.
 
The topline growth was backed by higher portfolio occupancy, which improved to 69.5 per cent from 68 per cent previously, as well as a rise in revenue per available room (RevPAR) to US$96 from US$91.
 
This contributed to an 18.9 per cent increase in distributable income to US$11.2 million for the latest half-year period.
 
ARA H-Trust&rsquo s net asset value per stapled security as at the end-2023 however, fell to US$0.74 from US$0.80 in the same period a year ago, which its managers attributed to a decline in portfolio valuation from higher capitalisation rates.
 
The trust&rsquo s overall portfolio value as at end-2023 nonetheless grew 0.5 per cent on the year at US$751.4 million compared to US$747.8 million as at end-2022, due to higher interest rates and upon the inclusion of the recently acquired Hilton Hotel.
 
The latest set of half-year results brings ARA H-Trust&rsquo s DPS for the full year to US$0.0343, up 12.3 per cent from US$0.03054 in FY2022.
 
Revenue rose 3.8 per cent to US$175.5 million in FY2023 while NPI grew 15.1 per cent to US$47.7 million, contributing to 13.3 per cent higher distributable income of US$19.8 million for FY2023.
 
Though its managers noted that occupancy rates have yet to fully return to pre-pandemic levels due to &ldquo lagging&rdquo business travel demand, they believe strong daily average room rate growth helped to boost overall RevPAR for the year.
 
Lee Jin Yong, chief executive of the managers, said: &ldquo As our portfolio is orientated towards domestic leisure and business travellers, we will continue to benefit from the growth in RevPAR in the coming year.&rdquo
 
As at Dec 31, 2023, the trust&rsquo s net gearing stood at 40 per cent, up from 35.4 per cent as at Dec 31, 2022.
 
Its weighted average debt maturity stands at 2.5 years, compared to 1.5 years at end-2022.
 
All debts maturing in FY2024 have been refinanced, said the managers, who added that they are &ldquo proactively seeking&rdquo to refinance the trust&rsquo s upcoming US$77 million loan due February 2025.
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Alignment
Elite
22-Feb-2024 09:51     
 
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 Alert Admin 		Wow DPU up 12% YoY and much more than that HY on HY. No debt problems, property valuation up. Still a lot of capacity upside.

On a 13% dividend yield, if you want US property exposure why would you mess around with US commercial REITs when you can buy this.
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Alignment
Elite
14-Nov-2023 08:07     
 
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 Alert Admin 		Very strong performance - NPI in 3Q went up 20% vs 1H. Even better, the recent refi must have been done at quite a low interest cost - the average cost of debt only went up 0.1% following the refi in 3Q vs 2Q. The resulting implied 3Q annualised dividend yield at the current share price (if I' ve done my numbers correctly) is 16% with more to come as occupancy and room rates continue to rise further.
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Joelton
Supreme
11-Nov-2023 10:19     
 
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 Alert Admin
ARA H-Trust&rsquo s 9-month net property income up 6.7% to US$35.2 million
ARA US Hospitality Trust : XZL 0%&rsquo s (ARA H-Trust) net property income (NPI) for the first nine months of FY2023 rose 6.7 per cent year on year to US$35.2 million from US$33 million.
 
Gross revenue stood at US$134.6 million, up 3.6 per cent from US$130 million in the same period last year.
 
Gross operating profit (GOP) for the nine-month period rose 8.6 per cent to US$48.7 million from US$44.9 million a year prior.
 
Both NPI and GOP margins were higher than in the year before. The NPI margin expanded 0.8 percentage point to 26.2 per cent, and the GOP margin rose 1.7 percentage points to 36.2 per cent.
 
On Friday (Nov 10), ARA H-Trust&rsquo s managers attributed the stapled group&rsquo s topline growth to a continued increase in average daily rates (ADR) and occupancy growth.
 
Revenue per available room (RevPAR) grew 14.8 per cent on the year to US$98 from S$85. The managers said this was boosted by ADR growth, even as occupancy rates were slightly below pre-pandemic levels, as corporate and group travel has yet to fully recover.
They cited a positive outlook for the US lodging market for the rest of the year, highlighting resilient demand for the first nine months despite elevated interest rates and inflationary concerns.
 
Demand from the business and group segments have also gained traction to boost overall lodging demand, they added.
 
Lee Jin Yong, chief executive of the managers, said: &ldquo With US hotel RevPAR now above pre-Covid-19 levels, the continuing recovery of business and group travel will represent further upside for our portfolio. We are cautiously optimistic that the operating metrics for our portfolio will further strengthen, barring any unforeseen circumstances.&rdquo
 
He also said the stapled group&rsquo s financial and liquidity positions have &ldquo significantly improved&rdquo with the recent refinancing of its maturing loans due in 2024.
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Alignment
Elite
02-Oct-2023 16:57     
 
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 Alert Admin 		Thank you. Yes, definitely looks better than the US office REITs. Also trading at a significant discount to the other hospitality trusts (Ascott/CDL//FE/Fraser) for no apparent reason, at least to me.
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doremifatso
Senior
02-Oct-2023 10:06     
 
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 Alert Admin 		A lot of their loans are maturing soon. The refinancing removes any uncertainty that the loans will be successfully refinanced. Interest rate will probably be a bit higher. But their financing cost is already above 4% so its unlikely to be much higher. Having settled the refinancing, ARA H Trust can focus on operational performance, which is doing well. Unlike the US office reits, this one should not have any dramatic cuts in valuation of properties or NPI. Should be able to yield 8-10% in short-mid term and increase when interest rates drop next time.
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