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Black Gold Industry Discussion
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pkli899
Supreme |
10-Sep-2021 10:32
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My bad....old flower eyes....see wrongly. Advance DPU is for period 1Jul to 19 Sep. New units start trading on 20 Sep. Pte placement priced at lowest of the range....so bad. At 5% discount to price prior to trading halt....very bad. Why cannot benefit existing holders....do rights issue instead? And why Advance DPU so low.....0.536 cents.......not about 1 cent?
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Joelton
Supreme |
10-Sep-2021 09:35
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ART to buy Texas student housing asset for US$70m proposes S$150m placement
ASCOTT Residence Trust (ART) will acquire a 1,005-bed student accommodation asset in Texas, United States for US$70 million. To partially fund the acquisition, the managers have proposed a S$150 million private placement.
The Texas asset - Wildwood Lubbock - is the hospitality trust' s third student accommodation investment within a span of seven months, the managers said in a press statement on Thursday.
Its acquisition is also in line with ART' s strategy to buy assets with a longer length of stay, as well as diversify its portfolio from traditional hospitality assets to increase resilience and stable income.
Based on pro forma estimates, the accretive acquisition will raise ART' s FY2020 distribution per stapled security by about 1.5 per cent, assuming the acquisition was completed on Jan 1, 2020, and ART held and operated the facility until Dec 31, 2020.
The transaction is expected to complete on Sept 21, 2021.
Wildwood Lubbock is a freehold, off-campus, cottage-style facility that was completed in 2017. It is also fully furnished and 100 per cent leased for the 2021 academic year.
The property serves over 40,000 undergraduate and graduate students from Texas Tech University (TTU), one of the top public research universities with elite college athletics status, ART' s managers said.
TTU is the sixth-largest university in Texas, with a student population that has grown consistently at a compound annual growth rate of 2.5 per cent over the past decade. Overall enrolment for the 2020 academic year also rose by 4 per cent on the year despite Covid-19.
Beh Siew Kim, chief executive of ART' s managers, said: " With Wildwood Lubbock, ART will expand its longer-stay portfolio to about 11 per cent, keeping us on track to have student accommodation and rental housing properties constitute about 15-20 per cent of our total property value in the medium term."
Since the expansion of ART' s investment mandate to include student accommodation assets in January 2021, the hospitality trust has committed to invest a total of about S$379 million on three prime student accommodation assets in the US and three rental housing properties in Sapporo, Japan.
The S$150 million private placement will be targeted at institutional and other investors at an issue price of between 98.3 Singapore cents and S$1.014 per new stapled security.
This represents a discount of between 2.5 per cent and 5.5 per cent to ART' s volume-weighted average price of S$1.040 per stapled security, for trades done on Sept 8 up to the time the placement agreement was signed on Sept 9.
About S$58.7 million or 39.1 per cent of the gross proceeds will go towards partially funding the Wildwood Lubbock acquisition, S$89 million or 59.4 per cent will be used to partially fund future potential acquisitions. The remaining S$2.3 million or 1.5 per cent will be used to pay the estimated professional and other fees and expenses in connection with the private placement.
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pkli899
Supreme |
09-Sep-2021 14:40
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Advance DPU of 0.536 cent is for period 1 Jul to 20 Sep 21. (new units from pte placement will be listed on 21 Sep. New purchase is USD 70 m (all in cost probably S$100 m). Pte placement S$150 m. Extra $50 m collected, why? Pte placement is not beneficial to existing holders. Cannot participate and ended up holding diluted. New purchase is accretive (DPU to increase by 1.9%) But placement will increased units by 4.9%! So, we will be worst off after this.....so bad! Another question is previous half year DPU was 2.045 cents. So, advance DPU why so little? 1 Jul to 20 Sep is almost one qtr already. Shouldn' t the DPU be around 1 cent? How they derived this figure? Are we short changed? Buy new property good for us? We are penalised twice? Is this fair? |
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Lobster
Elite |
09-Sep-2021 13:57
Yells: "Even Adam Khoo believes in the Black Market!" |
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Sorry the x-date is 16 September and the distribution is set as $0.00536
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Lobster
Elite |
09-Sep-2021 13:42
Yells: "Even Adam Khoo believes in the Black Market!" |
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Wow. Another advance dpu from Ascott, for the period 1 July to 19 September because of the private placement, similar to the Fraser Log Com Trust. The advance distribution is estimated to be between 0.486 cents and 0.586 cents per unit. Please do note the word " estimated" . X-date is 17 September and the payment will be paid on or around 9 November 2021. Do note that Ascott pays a half yearly dpu, so this payment is strictly an advance distribution. The next distribution will be based on the period 20 September to 31 December. vested. Pdyohwadfmb |
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PhillipTan
Supreme |
09-Sep-2021 13:10
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ART to buy Texas student housing asset for US$70m proposes S$150m placementAscott Residence Trust (ART) will acquire a 1,005-bed student accommodation asset in Texas, United States for US$70 million. To partially fund the acquisition, the managers have proposed a S$150 million private placement.The Texas asset - Wildwood Lubbock - is the hospitality trust' s third student accommodation investment within a span of seven months, the managers said in a press statement on Thursday. Its acquisition is also in line with ART' s strategy to buy assets with a longer length of stay, as well as diversify its portfolio from traditional hospitality assets to increase resilience and stable income. Based on pro forma estimates, the accretive acquisition will raise ART' s FY2020 distribution per stapled security by about 1.5 per cent, assuming the acquisition was completed on Jan 1, 2020, and ART held and operated the facility until Dec 31, 2020. The transaction is expected to complete on Sept 21, 2021. Wildwood Lubbock is a freehold, off-campus, cottage-style facility that was completed in 2017. It is also fully furnished and 100 per cent leased for the 2021 academic year. The property serves over 40,000 undergraduate and graduate students from Texas Tech University (TTU), one of the top public research universities with elite college athletics status, ART' s managers said. TTU is the sixth-largest university in Texas, with a student population that has grown consistently at a compound annual growth rate of 2.5 per cent over the past decade. Overall enrolment for the 2020 academic year also rose by 4 per cent on the year despite Covid-19. Beh Siew Kim, chief executive of ART' s managers, said: " With Wildwood Lubbock, ART will expand its longer-stay portfolio to about 11 per cent, keeping us on track to have student accommodation and rental housing properties constitute about 15-20 per cent of our total property value in the medium term." Since the expansion of ART' s investment mandate to include student accommodation assets in January 2021, the hospitality trust has committed to invest a total of about S$379 million on three prime student accommodation assets in the US and three rental housing properties in Sapporo, Japan. The S$150 million private placement will be targeted at institutional and other investors at an issue price of between 98.3 Singapore cents and S$1.014 per new stapled security. This represents a discount of between 2.5 per cent and 5.5 per cent to ART' s volume-weighted average price of S$1.040 per stapled security, for trades done on Sept 8 up to the time the placement agreement was signed on Sept 9. About S$58.7 million or 39.1 per cent of the gross proceeds will go towards partially funding the Wildwood Lubbock acquisition, S$89 million or 59.4 per cent will be used to partially fund future potential acquisitions. The remaining S$2.3 million or 1.5 per cent will be used to pay the estimated professional and other fees and expenses in connection with the private placement. ART halted trading on Thursday before the announcement. The counter closed flat at S$1.04 on Wednesday. |
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Lobster
Elite |
01-Sep-2021 17:50
Yells: "Even Adam Khoo believes in the Black Market!" |
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Surprised and disappointed nobody posted this.
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PhillipTan
Supreme |
30-Aug-2021 04:29
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Ascott Residence Trust terminates lease on Riverside Hotel at Clarke Quay for non-paymentAscott Residence Trust has terminated the master lease on and has taken possession of the property at 1 Unity Street in Singapore as the tenant, Park Hotel CQ, failed to pay the S$5.92 million owed after offset from the S$6.87 million security deposit, the REIT said in a filing to SGX Saturday." As the sole shareholder and guarantor of the tenant is under liquidation, the managers will work with the liquidators to recover the outstanding rent and damages due under the master lease," the REIT said. " The managers will explore the possible long term options for the property, which may include fresh master leases or management agreements," the REIT added. The property will be managed by Ascott International Management Pte. Ltd. (AIMPL) under a six-month management agreement, which may be extended, the filing said. AIMPL is a wholly owned subsidiary of CapitaLand, which is a controlling shareholder of the managers of Ascott Residence Trust Park Hotel CQ' s master lease on the property began in 2013 and had a 10-year term, the trust said in a June filing. An unrelated third party had filed a winding-up application in Singapore' s High Court against Park Hotel Management, the guarantor for Park Hotel CQ, in early June, with the landlord &mdash Ascendas Hospitality REIT, which is wholly owned by Ascott REIT &mdash issuing a demand in mid-June for payment of the outstanding balance, a June SGX filing said. |
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PhillipTan
Supreme |
04-Aug-2021 22:49
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Singapore Governance and Transparency Index inches to new high SATS, Ascott Residence Trust lead the packThe Singapore Governance and Transparency Index (SGTI) 2021 inched up for the year to a new high, as locally listed companies and trusts upheld their standards despite the ongoing Covid-19 pandemic.The mean score in the general category was 68.7 points, up 0.8 point from 67.9 points in 2020. For the real estate investment trust (Reit) and business trust category, the mean score rose to 85.0 points from 84.8 last year. For the second year running, SATS emerged as the top performer in the general category with 128 points out of a maximum total of 143. Under the Reit and business trust category, Ascott Residence Trust, which ranked third last year, claimed the top spot, scoring 115.3 out of the maximum 143 points. " This year' s SGTI results reflect the corporate governance performance of listed companies since the onset of the pandemic. It is heartening that the momentum of progress has been maintained," said associate professor Lawrence Loh, who is also director of the Centre for Governance and Sustainability (CGS) at the NUS Business School. " The key test now will be how these companies can persevere in their governance and sustainability efforts when the impending local and global operating conditions are expected to be even more challenging." The annual SGTI assesses companies on their corporate governance disclosures and practices, as well as the timeliness, accessibility and transparency of their financial results announcements. It is jointly conducted by CPA Australia, NUS Business School' s CGS and the Singapore Institute of Directors (SID). The Business Times is the strategic media partner. This year' s study ranked 519 Singapore-listed companies in the general category, and 43 trusts in the Reit and business trust category. Under the general category, companies are scored under a " B.R.E.A.D" framework: board responsibilities, rights of shareholders, engagement of stakeholders, accountability and audit, as well as disclosure and transparency. Companies are given a base score, with bonus points awarded for good practices and penalty points deducted for issues that point to poor governance. Reits and business trusts are also scored against other trust-specific items in addition to the B.R.E.A.D framework. The study noted that mean scores in the general category have consistently been improving since 2011, " signalling a general improvement and compliance of companies towards corporate governance disclosures" . Board diversity policy disclosures were made by 56.1 per cent of companies, up from 48.9 per cent in 2020. " This showed that companies valued the importance of diversity and inclusion in the workplace and had put in place policies to widen the range of skill sets and knowledge of their directors." A larger proportion of companies also disclosed the attendance of key personnel at annual general meetings, which the study said promotes greater transparency of leadership for shareholders. But while there were improvements in some areas, other aspects saw worse performance amid the pandemic. Only 29.5 per cent of companies conducted media briefings or news conferences in 2021, down from 41.9 per cent in 2020. The study also noted a need for better opportunities for shareholders to ask questions at annual general meetings and to receive timely meeting notices. Across the sections of the B.R.E.A.D framework, company scores generally increased. The exception was in the domain of board responsibilities, which saw a slight decline. Prof Loh noted that this could be due to various factors, including fewer disclosures of directorships and fewer board and audit committee meetings. The Reit and business trust category, meanwhile, saw an increase in bonus points being given for good disclosure practices. An example noted was disclosure of information on the succession planning for board and senior management, with 30.2 per cent of trusts making such disclosures this year versus 6.7 per cent in 2020. But there were also higher penalties for poor disclosure practices, such as discrepancies in corporate announcements. Max Loh, Singapore divisional president at CPA Australia, said: " With Singapore transitioning to an endemic Covid-19 era, there will clearly be tough business challenges ahead even as companies continue to embrace innovation, transformation and sustainability." He added that strong corporate governance, long-term value and sustainability initiatives should continue to be top priorities on the agenda of boards and senior management to help their organisations stay competitive and thrive in the new normal. The study found that core aspects of sustainability have seen " good progress momentum" . Even so, it noted that it is " essential to integrate sustainability with corporate governance" at the company level. Boards, too, have to take on stronger roles. Wong Su-Yen, chairman of the SID, said: " The global pandemic has renewed focus on stakeholder management, sustainability reporting and taking a long-term view. As companies reassess their business models and strategic outlook, this is an opportune time to recalibrate and emerge stronger from the crisis." |
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Lobster
Elite |
29-Jul-2021 11:35
Yells: "Even Adam Khoo believes in the Black Market!" |
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Ascott is one of my biggest reit portfolio...but the reason I didn' t stir the water too much because it is not yet time. Not yet means not yet to get out of its 1 to 1:06/7 hibernation. When it is time for its 7-8% dpu again and moving into its usual $1.30 +++++ enclave, there will be plenty to talk it over its ath attempts. Meanwhile two and half dpu is very good in pandemic years. Don' t forget it' s a hospitality stock.... |
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Joelton
Supreme |
29-Jul-2021 09:14
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Analysts up targets on Ascott Residence Trust, optimistic about recovery
ANALYSTS from Maybank Kim Eng and CGS-CIMB reiterated " buy" calls on Ascott Residence Trust (ART) Ascott Trust: HMN 0% on Tuesday, both projecting recovery despite it reporting lower revenue and gross profit in its H1 2021 earnings results.
Thanks to one-off gains in distributable income, ART on Tuesday reported a 95 per cent increase in its distribution per stapled security (DPS) to 2.05 Singapore cents for the first-half ended June 30, from 1.05 cents for the year-ago period.
Following that, the research team from Maybank Kim Eng upped its target price for ART to S$1.30 from S$1.25, a 27.4 per cent upside on its trading price of S$1.02 at 3.45pm on Wednesday. The analysts said they expect to see further improvement in revenue per active unit (RevPAU) and increased traction for the stapled security group in the second half of this year, as border reopening gathers pace.
" We continue to like ART for its diversified portfolio, concentrated long-stay assets, strong balance sheet, and S$300-plus million in residual divestment gains to support capital distributions amid slower distribution per unit growth," Maybank Kim Eng said.
Further, the analysts note that ART is poised for further growth through acquisitions, observing for instance that its merger with Ascendas Hospitality Trust (see Amendment note) boosted its assets under management and strengthened its growth profile with stable-income properties. ART, they add, is already seeing rising contributions from its stable income assets that include student accommodation and rental housing properties.
Upside swing factors include earlier-than-expected pickup in corporate demand, better-than-anticipated RevPAUs and accretive acquisitions where cap rates exceed the cost of funds, or divestments at low cap rates that unlock asset values, the team said, although it also warns of growth in supply of serviced residences unmatched by demand.
Meanwhile, CGS-CIMB projects " more sustainable" recovery for ART, conservatively upping its target for the stapled security group to S$1.22 from S$1.20 - still an upside of 19.6 per cent on its trading price of S$1.02 at 3.45pm on Wednesday.
Its analysts observed that ART' s portfolio RevPAU has been improving on a quarter-on-quarter basis since the second quarter of 2020, and is projecting further recovery in occupancy on the back of relaxations in restrictions around the world and region.
" China continued to lead the recovery with higher corporate demand Europe benefited from summer leisure demand while block bookings in Australia, Singapore and USA, and long stays in Indonesia, Philippines and Vietnam offered income stability in these countries," the research team said.
They also noted that ART' s gearing in the first half of financial year 2021 was lowered to 35.9 per cent, providing substantial debt headroom and flexibility to acquire, while also staying active in capital recycling.
" We expect ART to aggressively seek out acquisition targets to offset the income vacuum created by its divestments. It has more than S$300 million capital gain remaining which could underpin distribution stability," they added.
On the environmental, social and governance (ESG) front, CGS-CIMB says ART aims to obtain green certificates for all its properties by 2030, but notes that this may be challenging given that it has several " relatively old" buildings among its 88 properties worldwide (see Amendment note). If it does succeed in this endeavour, though, CGS-CIMB says it will be at the forefront of ESG.
On the whole, CGS-CIMB' s research team said ART' s longer weighted average lease expiry and diversified geographies indicate its resilience despite the impact of the pandemic.
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PhillipTan
Supreme |
28-Jul-2021 23:01
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Analysts up targets on Ascott Residence Trust, optimistic about recoveryAnalysts from Maybank Kim Eng and CGS-CIMB reiterated " buy" calls on Ascott Residence Trust (ART) on Tuesday, both projecting recovery despite it reporting lower revenue and gross profit in its H1 2021 earnings results.Thanks to one-off gains in distributable income, ART on Tuesday reported a 95 per cent increase in its distribution per stapled security (DPS) to 2.05 Singapore cents for the first-half ended June 30, from 1.05 cents for the year-ago period. Following that, the research team from Maybank Kim Eng upped its target price for ART to S$1.30 from S$1.25, a 27.4 per cent upside on its trading price of S$1.02 at 3.45pm on Wednesday. The analysts said they expect to see further improvement in revenue per active unit (RevPAU) and increased traction for the stapled security group in the second half of this year, as border reopening gathers pace. " We continue to like ART for its diversified portfolio, concentrated long-stay assets, strong balance sheet, and S$300-plus million in residual divestment gains to support capital distributions amid slower distribution per unit growth," Maybank Kim Eng said. Further, the analysts note that ART is poised for further growth through acquisitions, observing for instance that its merger with Ascendas Hospitality Trust (see Amendment note) boosted its assets under management and strengthened its growth profile with stable-income properties. ART, they add, is already seeing rising contributions from its stable income assets that include student accommodation and rental housing properties. Upside swing factors include earlier-than-expected pickup in corporate demand, better-than-anticipated RevPAUs and accretive acquisitions where cap rates exceed the cost of funds, or divestments at low cap rates that unlock asset values, the team said, although it also warns of growth in supply of serviced residences unmatched by demand. Meanwhile, CGS-CIMB projects " more sustainable" recovery for ART, conservatively upping its target for the stapled security group to S$1.22 from S$1.20 - still an upside of 19.6 per cent on its trading price of S$1.02 at 3.45pm on Wednesday. Its analysts observed that ART' s portfolio RevPAU has been improving on a quarter-on-quarter basis since the second quarter of 2020, and is projecting further recovery in occupancy on the back of relaxations in restrictions around the world and region. " China continued to lead the recovery with higher corporate demand Europe benefited from summer leisure demand while block bookings in Australia, Singapore and USA, and long stays in Indonesia, Philippines and Vietnam offered income stability in these countries," the research team said. They also noted that ART' s gearing in the first half of financial year 2021 was lowered to 35.9 per cent, providing substantial debt headroom and flexibility to acquire, while also staying active in capital recycling. " We expect ART to aggressively seek out acquisition targets to offset the income vacuum created by its divestments. It has more than S$300 million capital gain remaining which could underpin distribution stability," they added. On the environmental, social and governance (ESG) front, CGS-CIMB says ART aims to obtain green certificates for all its properties by 2030, but notes that this may be challenging given that it has several " relatively old" buildings among its 88 properties worldwide (see Amendment note). If it does succeed in this endeavour, though, CGS-CIMB says it will be at the forefront of ESG. On the whole, CGS-CIMB' s research team said ART' s longer weighted average lease expiry and diversified geographies indicate its resilience despite the impact of the pandemic. Units of the stapled security group last transacted at S$1.02 at 3.45pm in Wednesday trade, 1 per cent or 1 cent down from their opening price. |
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Joelton
Supreme |
28-Jul-2021 09:29
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Ascott Residence Trust almost doubles H1 DPS to 2.05 S cents despite 11% revenue drop
CAPITALAND subsidiary Ascott Residence Trust (ART) Ascott Trust: HMN +1.98% on Tuesday reported a 95 per cent increase in its distribution per stapled security (DPS) to 2.05 Singapore cents for the first-half ended June 30, from 1.05 cents for the year-ago period.
However, the increase was mainly due to one-off gains in distributable income.
Revenue fell 11 per cent to S$185 million, on the back of a S$13.1 million decline in revenue from the divestment of six properties. Further, a S$14 million drop in revenue was recorded from its existing portfolio from the impact of the ongoing Covid-19 pandemic.
These losses were offset partially by a S$3.6 million contribution from the acquisition of Paloma West Midtown in February this year, three rental housing properties in Japan in June this year, and a full half-year contribution from Quest Macquarie Park Sydney, acquired in February last year.
Gross profit shrank by 7 per cent to S$82.1 million, as lower operating costs mitigated the softer revenue.
In a results briefing on Tuesday morning, chief executive officer of the managers Beh Siew Kim noted that the year-on-year decline in H1 2021 results was mainly due to the absence of significant impact from Covid-19 in Q1 last year.
She highlighted that, on a same-store basis excluding acquisitions and divestments in 2020 and 2021, revenue and gross profit were 45 per cent and 56 per cent higher respectively in Q2 2021, compared with the year-ago period.
" We' re seeing more enquiries on corporate bookings in Q2," Ms Beh said. " Compared to pre-Covid, we' re not there yet. But there' s definitely an improvement."
" As governments around the world step up their vaccination programmes amid emerging variants of Covid-19 and start to ease restrictions on international travel, we are cautiously optimistic of the varied pace of recovery across global markets," she added. " Things are slowly coming back."
ART' s distributable income jumped 96 per cent to S$63.8 million in H1 2021, largely attributable to a distribution top-up of S$20 million. The managers of the stapled hospitality group said the top-up was to share divestment gains with stapled securityholders, replace income loss from divested assets, and mitigate the impact of Covid-19 on distributions.
DPS was also boosted by income received from the termination of the sale of two Citadines assets ART holds in Xinghai Suzhou and Zhuankou Wuha as well as realised exchange gains from the divestment proceeds and repayment of foreign currency bank loans.
For the first half of the year, the managers of ART said it will be paying out 2.045 cents per stapled security on Aug 27, 2021.
Looking ahead, the managers said another top-up in distribution income is " likely" in H2 amid a protracted recovery from the Covid-19 pandemic.
" We' re not really out of the woods yet in terms of international travel," Ms Beh said. " [But] we' re on the road to recovery &hellip (and) we' re getting there."
For now, ART is looking to shore up segments that are more resilient against pandemic-led headwinds.
For example, the managers aim to expand ART' s asset allocation in rental housing and student accommodation properties, from about 9 per cent currently to around 15 to 20 per cent of its portfolio value.
" The three Japan rental housing properties we acquired in June 2021 will immediately contribute stable income, given their long leases of about two years and high occupancy rates. The average EBITDA yield of the three rental housing properties is approximately 4 per cent," Ms Beh said.
Meanwhile, the purpose-built student accommodation (PBSA) segment has also " proven to be a very resilient asset class" , she added.
ART in June announced it will jointly invest and develop a 678-bed freehold student accommodation asset in South Carolina for US$109.9 million with its sponsor, The Ascott. The student housing asset - ART' s second in the US after its acquisition of Paloma West Midtown in Georgia in February - has a net rentable area of 232,748 square feet and will be completed in Q2 2023.
The managers on Tuesday said it is currently focusing on PBSA assets in the US, but does not rule out exploring student accommodation assets in the UK and Australia " when the time is right" .
According to the managers, ART' s " stable income sources" - which include master leases, management contracts with minimum guaranteed income, and rental housing and student accommodation properties - contributed approximately 74 per cent of its gross profit in H1 2021. There are no master leases expiring in 2021.
" With about S$140 million remaining in divestment proceeds and a debt headroom of S$1.9 billion, ART has a strong financial capacity to seek investment opportunities in more long-stay lodging assets to deliver sustainable, long-term value to our stapled securityholders," said Bob Tan, chairman of the managers.
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Lobster
Elite |
27-Jul-2021 10:16
Yells: "Even Adam Khoo believes in the Black Market!" |
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$0.0245 cents dpu... okay, la, in pandemic years. Used to be 3 to 4 cents | ||
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PhillipTan
Supreme |
27-Jul-2021 09:01
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Ascott Residence Trust posts 95% higher DPS of 2.045 cents in 1H21 thanks to divestment gainsAscott Residence Trust (ART) has reported distribution per stapled security (DPS) of 2.045 cents for the 1HFY2021 ended June, 95% higher than DPS of 1.047 cents in the corresponding period the year before.The surge in DPS was due to the trust' s active portfolio optimisation, says the manager. Distributable income for the 1HFY2021 nearly doubled to $63.8 million, 96% higher than the $32.6 million posted in the 1HFY2020. The higher figure includes a one-off partial distribution of divestment gains of $20 million, which was shared with ART' s stapled securityholders. The gains were included to replace income loss from the trust' s divested assets as well as to mitigate the impact of Covid-19 on distributions. Distributable income for the half-year period also included termination fee income received and realised exchange gains. ART says it may also grant further rental deferment and, or waivers to support tenants during this " challenging period" . ART previously included a $5.0 million top-up in its 1HFY2020 distribution. Revenue for the 1HFY2021 fell by 11% y-o-y to $185.0 million due to absence of contribution from ART' s six properties, which were divested at a premium to book value. The lower revenue was also attributable to lower revenue derived from its existing portfolio, and offset by the additional contribution of $3.6 million from Quest Macquarie Park in Sydney, Australia, Paloma West Midtown in Georgia, US, as well as three rental housing properties in Sapporo, Japan. 1HFY2021 gross profit fell 7% y-o-y to $82.1 million, which comprised contribution from properties on master leases, properties on management contracts with minimum guaranteed income and from properties on management contracts. A provision of $5.3 million has been made in the 1HFY2021 for Park Hotel Clarke Quay' s outstanding rents and the master lease expiring in 2023 that will subsequently be terminated. On a same-store basis, revenue and gross profit for the 1HFY2021 fell by 7% and 1% y-o-y respectively. Revenue per available unit (RevPAU) for the 1HFY2021 fell 14% y-o-y to $60. The trust' s portfolio RevPAU has increased over four straight quarters since 2QFY2020, with an 18% increase from 1QFY2021 to 2QFY2021. On a same-store basis, revenue and gross profit for the 2QFY2021 stood 45% and 56% higher respectively compared to the 2QFY2020. There are no master leases expiring in 2021. In its results statement, ART announced that it was in the process of repossessing Park Hotel Clarke Quay and that its managers are assessing options for the property' s operations. " ART' s predominantly long-stay properties, geographically diverse portfolio and presence in large domestic markets offer resilience and it is well-placed to benefit as the global economy recovers," says Bob Tan, chairman of the managers. " ART has been actively reconstituting and enhancing our portfolio by redeploying divestment proceeds into higher-yielding and long-stay assets to increase stable income and create greater value for our stapled securityholders," adds Tan, who revealed that ART had received about $580 million in proceeds from the divestment of its six properties at about a 2% average exit yield. " In 1HFY2021, our total investments of about $285 million were at an average EBITDA yield of about 5%," says Tan. " With about $140 million remaining in divestment proceeds and a debt headroom of $1.9 billion, ART has a strong financial capacity to seek investment opportunities in more long-stay lodging assets to deliver sustainable, long-term value to our stapled securityholders. ART aims to expand our asset allocation in rental housing and student accommodation properties from about 9% currently to about 15-20% of our total property value in the medium term," he adds. " The initial phase of recovery remains largely driven by the domestic and essential corporate travel segments, and the return of international demand may be more gradual. ART' s properties in China continued to lead the recovery with higher corporate demand while properties in Europe benefitted from leisure demand brought on by the summer season. The block bookings at our properties in Australia, Singapore and US, as well as the long stays in Indonesia, Philippines and Vietnam continued to offer stability," says Beh Siew Kim, CEO of the managers. " ART' s expansion of our rental housing and student accommodation portfolios will generate greater stable returns. The three Japan rental housing properties we acquired in June 2021 will immediately contribute stable income, given their long leases of about two years and high occupancy rates. The average EBITDA yield of the three rental housing properties is approximately 4%. Our first student accommodation asset, Paloma West Midtown is 97% pre-leased for the Fall 2021 semester, in line with pre-pandemic pre-leasing rates," she adds. " Our second student accommodation asset in South Carolina, US which we will jointly develop with our sponsor, The Ascott Limited, has a target stabilised EBITDA yield of about 6.2%." ART will be rejuvenating its portfolio with four projects in Singapore and the US undergoing asset enhancement or development. Its maiden development project and coliving property, lyf at one-north Singapore is expected to be completed in 4Q2021. In the US, the trust' s refurbishment of its Hotel Central Times Square in New York is expected to launch in 4Q2021. The DPS will be payable on Aug 27. Units in ART closed flat at $1.01 on July 26. |
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PhillipTan
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08-Jul-2021 12:16
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CGS-CIMB sees stronger RevPAR for hospitality REITs, ART remains top pickCGS-CIMB Research anticipates Singapore hospitality REITs to deliver better revenue per average room (RevPAR) in the 2Q2021, on the back of government contracts in Singapore combined with better performance from select overseas markets. For Singapore, analysts Eing Kar Mei and Lock Mun Yee point out that following the rise in Covid-19 cases in recent months, government contracts for hotels have risen to 40% as of June, compared to 30% in December 2020. Eing and Lock expect this government-driven support to continue into 2022, anticipating that some 60% of REITs' occupancy will be supported by government contracts in 2021 before this comes down to an average of 40% in 2022. They also note that leisure demand for Singapore hotels remained weak during 2Q2021 due to the heightened alert imposed from May 16. " Except for hotels based in Sentosa, we expect the demand for non-government contract hotels in 2Q2021 to be mainly driven by corporate businesses," the analysts add. Nonetheless, Eing and Lock believe Singapore will deliver an overall stronger RevPAR on a q-o-q basis in the 2Q. Beyond Singapore, the analysts view that Europe, US and China likely saw y-o-y RevPAR improvements in the 2Q2021, thanks to less restrictive Covid-19 measures and higher vaccination rates. For Australia and New Zealand, while occupancy has improved gradually since the start of the year, Australia' s recovery in 2Q2021 was stymied by tighter restrictions in April-June. For Maldives, the analysts believe RevPAR could be weaker due the ban on visitors from South Asian countries since May 9 as well as the seasonal lull in 2Q. RevPAR in Japan and Malaysia are also expected to remain weak given on-going Covid-19 restrictions. Given the outlook for Singapore and the rest of the world, Eing and Lock reiterate that Ascott Residence Trust (ART) remains their top hospitality REIT pick, given its higher exposure to markets with stronger domestic demand. " We expect ART to deliver stronger overall q-o-q RevPAU in 2Q2021, driven mainly by Europe, and China," they say. They have an " add" call on ART with a target price of $1.20. CGS-CIMB also has " add" calls on Far East Hospitality Trust (FEHT) with a target price of 74.5 cents as well as CDL Hospitality Trust (CDLHT) with a target price of $1.43. Eing and Lock expect CDLHT to deliver better overall RevPAR, similarly driven by Europe, with some staycation demand in Singapore. For FEHT however, despite stronger q-o-q hotel RevPAR, the analysts anticipate lower overall income due weaker performance from the service residence segment. Nonetheless, they have an overall optimistic outlook for the sector. " With rising vaccination rates globally, we think the recovery going forward would be more sustainable vs. last year," they surmise. The analysts highlight that ART, CDLHT and FEHT are trading below book and expect the market will price in ahead of recovery. In addition, they point out that FEHT is a close candidate for FTSE EPRA Nareit, which just revised its free float market cap inclusion criteria. " We believe further improvements in share price in tandem with the improving Covid-19 situation will place FEHT in a good position for FTSE EPRA Nareit inclusion," they say. As at 10am, units in ART, CDLHT and FEHT are trading at $1.06, $1.26 and 59.5 cents. |
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Joelton
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26-Jun-2021 11:48
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Ascott Residence Trust issues notice of intended forfeiture to Park Hotel CQ
ASCOTT Residence Trust (ART) has issued a notice of intended forfeiture to Park Hotel CQ following outstanding payments relating to a master lease for 1 Unity Street.
The 10-year lease commenced in 2013.
In a filing to the Singapore Exchange on Friday night, ART said that a letter of demand was issued to the tenant to recover sums due under the master lease as at March 1, 2021. The parties were then in talks with respect to the master lease.
However, on June 7, an application for the winding up of Park Hotel Management - the guarantor under the master lease and the parent company of the tenant - was filed in the Singapore High Court by an unrelated third party. On June 18, the landlord, Ascendas Hospitality Reit, issued a demand for about S$5.92 million to the guarantor. Ascendas Hospitality Reit is owned by Ascott Reit.
The tenant is required to pay the outstanding amount by 5pm on June 30, failing which Ascott Reit " will take steps to repossess the property and liaise with the tenant to ensure a smooth handover of the property and the hotel operations" , it said. " The master lease will then be terminated."
ART is a stapled group comprising Ascott Reit and Ascott Business Trust.
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Joelton
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22-Jun-2021 09:34
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Ascott to buy two properties in Paris, Hanoi for S$210m via private equity fund
THE Ascott will spend S$210 million to acquire two properties in France and Vietnam through the Ascott Fund Serviced Residence Global Fund (ASRGF), its private equity fund with Qatar Investment Authority.
The wholly-owned lodging business unit of CapitaLand has entered into two agreements to acquire the two properties on a turnkey basis. They are projected to open in 2024, CapitaLand said in a bourse filing on Monday.
Ascott will acquire a freehold asset in Paris, which will be refurbished and fall under its lyf brand, making it Ascott' s first co-living property in Europe. Named livelyfhere Gambetta Paris, the 139-unit property is located in the 20th arrondissement, near galleries, cinemas, café s and restaurants, street art and music venues.
Ascott will also acquire the 364-unit Somerset Metropolitan West Hanoi. The asset is located in Hanoi' s new central business district and is close to several government agencies as well as local and international corporations. The property is also a 10-minute drive to the Vietnam National Convention Centre and half-an-hour drive to the Noi Bai International Airport.
The acquisitions will raise Ascott' s total fund assets under management (FUM) to about S$8 billion, it said. There will also be eight properties under the ASRGF with close to 1,700 units.
CapitaLand' s chief executive for lodging Kevin Goh said: " ASRGF and our sponsored hospitality trust, Ascott Residence Trust are key investment platforms to grow our FUM in a capital-efficient manner."
He noted that the group is seeing strong growth momentum from fee-related earnings generated through the management of its private fund and the listed hospitality trust, as well as recurring fees earned from asset management and property management.
Mak Hoe Kit, managing director of ASRGF and head of business development at Ascott, said the first ASRGF-owned property that was divested outperformed the expectation of its underwriting.
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Joelton
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17-Jun-2021 08:07
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ART, Ascott to jointly invest, develop South Carolina student housing asset for US$109.9m
ASCOTT Residence Trust (ART) and its sponsor The Ascott will jointly invest and develop a 678-bed freehold student accommodation asset in South Carolina for US$109.9 million.
This comes as the stapled group looks to expand its longer-stay portfolio after including student accommodation in its investment mandate this year.
The manager expects the accretive investment to raise ART' s pro forma FY2020 distribution per stapled security by about 2.1 per cent. Upon stabilisation, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) yield is projected to be about 6.2 per cent.
The student housing asset will start construction in Q3 2021 and be completed in Q2 2023, the managers said in a press statement on Wednesday morning. It will serve over 35,000 undergraduate and graduate students from the University of South Carolina (USC) nearby.
The property has a net rentable area of 232,748 square feet. It will provide fully-furnished studios, as well as one to five-bedroom apartment units which will come with a fully-equipped shared kitchen and appliances such as a washer and dryer. Community amenities include a fitness centre and study lounges, to name a few.
To start, ART and Ascott will each own 45 per cent of the South Carolina student housing asset, while a third-party partner owns the remaining 10 per cent.
Ascott and ART will acquire the remaining 10 per cent after the property' s performance stabilises, the managers said. ART will also have the priority to fully acquire the student accommodation asset from Ascott.
The third party is a joint venture between unnamed parties, referred to as " one of the largest student housing developers in the US" and a " large national real estate developer and contractor based in the US" . The asset will be managed by an affiliate of one of the members of the third party.
Separately, Ascott has formed a partnership with the student housing developer to invest and develop more student accommodation properties in the US, which the manager said could become a potential pipeline for ART from its sponsor.
CapitaLand' s chief executive for lodging and Ascott' s chief executive Kevin Goh said: " Through our partnership with the leading local student housing developer, Ascott will gain immediate access to prime student accommodation assets in the US."
He said that Ascott' s focus on the long-stay segment has allowed it to remain resilient amid Covid-19 and outperform its peers. Ascott is CapitaLand' s wholly-owned lodging business unit.
The move follows ART' s agreement this month to purchase three rental housing properties in Sapporo, Japan. The stapled group also acquired its first student accommodation asset Paloma West Midtown in Georgia, US, in February this year.
Beh Siew Kim, chief executive of ART' s managers, said student accommodation assets have leases that typically last for a year and their countercyclical nature further strengthens the resilience of ART' s portfolio against any short-term volatility.
She noted that the South Carolina asset is in a prime location in downtown Columbia, the capital of South Carolina - which is the fourth fastest-growing state in the US.
USC is the largest university in the state and has an athletics programme that competes in the South-eastern Conference, one of the " Power 5" athletics conferences in the National Collegiate Athletic Association, Ms Beh added. About 96 per cent of USC' s students are domestic and the managers expect continued strong demand in the long term, she said.
On top of two student accommodation assets, Ascott and ART own five other hotels with over 1,200 units in the US, the managers said. Ascott also owns a majority stake in Synergy Global Housing, an accommodation provider which offers apartments for corporate lease.
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PhillipTan
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16-Jun-2021 11:07
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ART, Ascott to jointly invest, develop South Carolina student housing asset for US$109.9mAscott Residence Trust (ART) and its sponsor The Ascott will jointly invest and develop a 678-bed freehold student accommodation asset in South Carolina for US$109.9 million.This comes as the stapled group looks to expand its longer-stay portfolio after including student accommodation in its investment mandate this year. The manager expects the accretive investment to raise ART' s pro forma FY2020 distribution per stapled security by about 2.1 per cent. Upon stabilisation, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) yield is projected to be about 6.2 per cent. The student housing asset will start construction in Q3 2021 and be completed in Q2 2023, the managers said in a press statement on Wednesday morning. It will serve over 35,000 undergraduate and graduate students from the University of South Carolina (USC) nearby. The property will provide fully-furnished studios, as well as one to five-bedroom apartment units which will come with a fully-equipped shared kitchen, as well as appliances such as a washer and dryer. Community amenities include a fitness centre and study lounges, to name a few. To start, ART and Ascott - which is CapitaLand' s wholly-owned lodging business unit - will each own 45 per cent of the South Carolina student housing asset, while a third-party partner owns the remaining 10 per cent. Ascott and ART will acquire the remaining 10 per cent after the property' s performance stabilises, the managers said. ART will also have the priority to fully acquire the student accommodation asset from Ascott. The third party is a joint venture between unnamed parties, referred to as " one of the largest student housing developers in the US" and a " large national real estate developer and contractor based in the US" . The asset will be managed by an affiliate of one of the members of the third party. Separately, Ascott has formed a partnership with the student housing developer to invest and develop more student accommodation properties in the US, which the manager said could become a potential pipeline for ART from its sponsor. |
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