Ascott Residence’s Resilience and Growth Potential Highlighted by Strong Financial Position and Strategic Acquisitions

Analyst Darren Chan of Phillip Securities maintained a Buy rating on Ascott Residence (ATTRF – Research Report), with a price target of S$1.05.

Darren Chan’s rating is based on a combination of factors that highlight the resilience and growth potential of Ascott Residence’s portfolio. The company demonstrated a 4% year-over-year increase in gross profit for the first quarter of 2025, driven by improved operational performance and new property contributions, which helped offset income losses from divestments. Additionally, the portfolio’s revenue per available unit (RevPAU) rose by 4% year-over-year, supported by higher average occupancy rates and strategic acquisitions in Japan.
Darren Chan also notes the company’s strong financial position, with over S$300 million in prior divestment gains available to offset potential income gaps from assets undergoing asset enhancement initiatives. The current share price suggests an attractive dividend yield of 7% for FY25e, which, along with geographical diversification and stable income sources, provides downside protection against economic uncertainties. Furthermore, the company’s focus on mid-tier properties positions it well to capture demand from budget-conscious travelers, while ongoing efforts to secure long-term corporate bookings and explore acquisition opportunities in longer-stay assets add to its growth prospects.

In another report released on April 28, CGS-CIMB also reiterated a Buy rating on the stock with a S$1.13 price target.