Ascendas Hospitality Trust

Ascendas Hospitality Trust: reported DPU down 3.9% y/y to 1.24c adjusting for larger security base and $1.8m incurred on partial unwinding of cross-currency swaps. This translates to 6.7% yield. AHT posts 1QFY14/15 NPI of $21.5m (+32.6% y/y) on 11.1% y/y growth in revenue to $53.3m. The higher revenue is mainly due to new contributions from Park Hotel Clarke Quay in Singapore and Osaka Hotel in Japan. Distributable income climbed 25.2% y/y to $13.7m but dilution and cost incurred on unwinding CCS resulted in lower actual DPU. Average occupancy, ADR and RevPAR improved in both Australia and China. Balance sheet is healthy, with aggregate leverage at 38.2% for AHT (a stapled security), 29.0% for A-HREIT and 43.2% for A-HBT. AHT trades at 1.0x P/BV.