Thursday, December 24, 2015

Ascendas Hospitality Trust

Ascendas Hospitality Trust (AHT): Received an unsolicited expression of interest (EOI) from an unnamed party, relating to the possible acquisition of all units in the trust.

The manager of AHT is currently undertaking a strategic review to evaluate the viability of the EOI and emphasises that discussions are at an early stage.

AHT's portfolio comprises 11 hotels with over 4,100 rooms across Australia, China, Japan and Singapore.

AHT spiked 5% to $0.73 in early trading, valuing the reit at 1.02x P/B, below its 5-year historical average of 1.18x. This is compared to hospitality reits' average of 0.81x P/B.

There is only one broker coverage on the reit, where the house has maintained its Buy rating and TP of $0.74 on the release of the potential takeover offer.

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