Ascott Residence Trust

Ascott Residence Trust: OCBC upgrades to Buy from hold, with TP $1.37. Believes ART is undervalued after the 13% fall since Jan this year. Notes business activity in the Eurozone is improving, having risen to a 27mth high in Sep. Gradually this should translate to better leasing prospects for ART’s European services residences. Meanwhile FX directions should help ART, with improvements in the EUR and GBP vs the SGD estimated to contribute a ~0.8% increase in portfolio value.