Stock Name: AscottREIT
Company Name: ASCOTT RESIDENCE TRUST
OCBC Investment Research in a May 24 research report says: "Despite ongoing uncertainty in Europe, we believe that income from ART’s European assets would be underpinned by master leases arrangements in the 17 properties in France and two in Germany, which contributed a total of 26% of gross profit for 1Q12. "In addition, management contracts with minimum guaranteed income are in place for seven properties in Belgium, Spain and the UK, which contributed 12% of 1Q12 gross profit. The balance sheet remains healthy with gearing at 41.6% of as end Mar 12. "Currency exposure is also balanced – with 26%, 32% and 29% of total debt is denominated in SGD, EURO and the JPY, respectively, with the remainder in the Sterling Pound, USD and AUD. With an attractive yield of 7.9%, we continue to see value in the share price. Fair value estimate of $1.14. MAINTAIN BUY."
Company Name: ASCOTT RESIDENCE TRUST
| Research House: OCBC | Price Call: BUY | Target Price: 1.14 |
OCBC Investment Research in a May 24 research report says: "Despite ongoing uncertainty in Europe, we believe that income from ART’s European assets would be underpinned by master leases arrangements in the 17 properties in France and two in Germany, which contributed a total of 26% of gross profit for 1Q12. "In addition, management contracts with minimum guaranteed income are in place for seven properties in Belgium, Spain and the UK, which contributed 12% of 1Q12 gross profit. The balance sheet remains healthy with gearing at 41.6% of as end Mar 12. "Currency exposure is also balanced – with 26%, 32% and 29% of total debt is denominated in SGD, EURO and the JPY, respectively, with the remainder in the Sterling Pound, USD and AUD. With an attractive yield of 7.9%, we continue to see value in the share price. Fair value estimate of $1.14. MAINTAIN BUY."
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