CIMB Research raised its target price for Ascott Residence Trust to $1.21 from $1.19 and kept its neutral rating, as it expects the serviced residence owner to report stronger revenues in the second half due to the London Olympics.
By 12:22 p.m., units of Ascott REIT were 1.2% higher at $1.225, and have gained about 26% since the start of the year, versus the FT ST Real Estate Investment Trust's 23% rise.
Ascott REIT reported second-quarter distribution per unit rose 2% to 2.38 cents, boosted by newly acquired assets in Japan, CIMB said.
However, the trust's growth in Europe was eroded by foreign exchange fluctuations, which CIMB said is a growing concern.
OCBC Investment Research also raised its target price for Ascott REIT to $1.34 from $1.23, and maintained its buy rating, citing better-than-expected second quarter earnings.
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