Ascendas HT

Ascendas HT: Entered into CSPA with Ainodake Godo Kaisha to acquire Osaka Namba Washington Hotel Plaza in Osaka for $110.8m, 3.3% below independent valuations. This is the second property acquisition since IPO in Jul’12. This represents a NPI yield of 6.4% post property taxes, insurance and maintenance capex. Acquistion expected to complete by mid-April 2014. HSBC expects the acquisition to be funded by a mix of debt and equity, and earnings could be ~1-2% accretive to DPU. Citing this acquisition a marginal positive, HSBC maintains Neutral with TP $0.75