Ascott Residence Trust

Ascott Residence Trust: CIMB hosted grp for a non-deal roadshow and maintains Neutral with $1.32 TP. House more positive on the stock after gaining more clarity on growth potential via asset enhancements and acquisitions. That said, continue to expect macro headwinds to cap same-store growth and see forex volatility as an overhang. Revise assumptions for long-term and AEI-led RevPau growth, and factor in S$100m in acquisitions in 2013/14, adjusting DPU accordingly. As the stock has done well YTD, remain Neutral on the lack of strong catalysts. Take comfort in recent renewed optimism on ECB action, but remain skeptical on its sustainability. Mgt caveats it might hedge the Euro depending on conditions.