AscottREIT - DBSV keeps Ascott Residence at Buy; 3Q in line

Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST
Research House: DBS Vickers

DBS Vickers keeps Ascott Residence Trust (A68U.SG) at Buy with $1.38 target price; says 3Q10 DPU of 1.85 cents in line; topline of $43.5 million, (+5% on year, +5% on quarter), gross profit of S$21.1 million, (down 6% on year, +2% on quarter) also in line. 

“Led by strong performances in its Singapore and Philippines operations, ART achieved a portfolio RevPAU of $130/night in 3Q10 (+7% on year, +4% on quarter) on slight uptick in occupancies to 83%,” while distributable income remained stable at $11.9 million. 

Says performance pulled ahead by Singapore, which delivered “stunning” 31% growth in topline. Says Asia to drive 53% of topline growth going forward; “with FY11-12 prospective yield of around 6.6%-6.7%, ART offers investors an attractive exposure to the recovery in global travel & business activities.” 

Shares +1.6% at $1.26.