In a report released today, Geraldine Wong from DBS maintained a Buy rating on Ascott Residence, with a price target of S$1.15.
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Geraldine Wong’s rating is based on several positive indicators for Ascott Residence’s future performance. The company’s gross profit has seen a year-on-year increase, and its distribution per unit (DPU) has surpassed expectations, suggesting strong financial health. Additionally, the company’s portfolio revenue per available unit (RevPAR) has shown recovery, particularly in overseas markets, indicating resilience and growth potential.
Furthermore, Wong highlights the company’s strategic initiatives, such as asset enhancement and acquisitions, which are expected to drive further DPU growth. The company’s asset recycling strategy and healthy gearing level provide a solid foundation for future expansion. Despite some market softness in Singapore, the company’s asset-level RevPAR has significantly outperformed the industry, showcasing its competitive edge. These factors collectively support Wong’s Buy rating for Ascott Residence.