Ascendas Hospitality Trust

Ascendas Hospitality Trust: 4QFY14 DPU fell 28% y/y to 1.21¢, while distributable income fell 7.5% to $12.5m. Revenue and NPI increased 9.7% and 19.3% respectively to $52.9m and $22m respectively, on the back of improved performance of Australia portfolio and new income contribution from Park Hotel Clarke Quay, acquired in Jun’13. Aggregate leverage stood at 35.6%. Distributable income fell largely due to a $2m cost incurred for the partial unwinding of the cross-currency swaps for the Australia Portfolio on the back of a weakening AUD. This unwinding is expected to incur costs and be completed by Jun’15. AHT has recently completed acquisition of Osaka Namba Washington Hotel Plaza on 15 Apr’14, and expects this to be DPU accretive going forward. NAV at end Mar was $0.77, translating to ~1.1x P/B. Full year yield is 7.7%