Ascott REIT

Ascott REIT: 2Q12 results was in-line. Rev at $78.9m, +8% YOY and +10.3% qoq, helped by higher rev from new acquisitions in Tokyo and Kyoto and better performing serviced residences in the UK, Philippines and China. DPU at 2.4c, +1.9% YOY and +11.2% QOQ. With higher rentals from the rebranded Citadines Prestige Trafalgar Square London and higher demand for its Philippines serviced residences from the business process outsourcing, oil and gas and aircraft engineering sectors, 2Q rev per available unit rose 6$ to $156 per day from $147 per day YoY. Going forward, REIT aims to continue focusing on yield-accretive acquisitions and explore opportunities in Asia as well as London, Paris and key cities in Germany.At current price, grp trades at an annualized 7.4% yield and 0.85x P/B. Ratings as follow: CIMB maintains Neutral with $1.21 TP. UOB Kay Hian maintains Buy with $1.42 TP.