Ascott Residence (HMN) AI Stock Analysis

• Market Cap: S$3.24B
• Dividend Yield: 6.97%
• Average Volume (3M): 5.41M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.60
• Revenue Growth: 3.18%
• EPS Growth: -0.50%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Diversified
• EPS (TTM): 0.06
• Shares Outstanding: 3,816,571,000
• 10 Day Avg. Volume: 3,285,110
• 30 Day Avg. Volume: 5,409,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.12
• Price Target Upside: 31.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Ascott Residence displays a robust financial performance with consistent revenue growth and strong cash flow, ensuring a solid position in the REIT sector. The valuation is attractive with a reasonable P/E ratio and high dividend yield. Technical analysis suggests stability, though caution is advised due to potential overbought conditions. Overall, the stock is a solid performer with reliable fundamentals, though debt levels should be monitored.

Positive Factors

Asset Recycling

Continued asset recycling is expected to drive earnings and net asset value growth, supported by a healthy gearing level.

Dividend Yield

The current share price implies an FY25e dividend yield of 7%.

Geographical Diversification

Geographical diversification is expected to help mitigate softening demand in Singapore, with overseas markets such as Japan providing resilience.

Negative Factors

Expenses and Tariff Disputes

Management is cautious of potentially higher expenses due to ongoing tariff disputes, which could impact profit margins.

Financial Risk

The gearing ratio is expected to increase to a high level, which could imply higher financial risk.

Interest and Operating Costs

High operating costs and increased year-on-year interest costs are identified as key risks.

Ascott Residence Business Overview & Revenue Model

Company Description

Ascott Residence Trust (Ascott REIT) is a leading hospitality trust in Asia, focused on investing in income-generating real estate assets primarily used as serviced residences, rental housing properties, and other hospitality-related properties. The company operates a diverse portfolio of properties located in key cities across Asia, Europe, and the United States, offering a range of accommodation options from budget-friendly to luxury residences.

How the Company Makes Money

Ascott Residence Trust generates revenue primarily through leasing its properties as serviced apartments and rental accommodations to both short-term and long-term guests. The trust benefits from its strategic locations in major cities and its diverse portfolio, which attracts a wide range of customers including business travelers, expatriates, and tourists. Revenue is also driven by the trust's active asset management strategies, which include refurbishments and value-enhancing initiatives to maximize returns. Additionally, Ascott REIT leverages strategic partnerships with global hospitality brands and operators, ensuring high occupancy rates and strong brand recognition, which further contribute to its revenue streams.

Ascott Residence Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
744.56M	621.24M	394.41M	369.87M	514.96M
	Gross Profit
304.03M	282.82M	173.29M	149.60M	252.61M
	EBIT
293.03M	322.83M	272.78M	-292.45M	331.45M
	EBITDA
466.88M	358.60M	305.42M	105.34M	343.95M
	Net Income Common Stockholders
231.25M	223.31M	309.32M	-222.55M	196.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
432.81M	363.63M	346.33M	486.70M	275.50M
	Total Assets
8.73B	8.02B	7.73B	7.16B	7.42B
	Total Debt
3.32B	3.15B	3.01B	2.75B	2.65B
	Net Debt
2.88B	2.78B	2.66B	2.26B	2.37B
	Total Liabilities
3.90B	3.58B	3.37B	3.12B	3.08B
	Stockholders Equity
4.75B	4.36B	4.29B	3.96B	4.26B
Cash Flow		Free Cash Flow
138.57M	233.79M	38.75M	42.76M	197.34M
	Operating Cash Flow
300.65M	282.32M	145.63M	74.09M	229.00M
	Investing Cash Flow
-300.98M	-308.82M	-538.55M	296.10M	258.66M
	Financing Cash Flow
165.47M	71.17M	258.63M	-166.47M	-439.78M

Ascott Residence Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:HMN, the sentiment is Negative. The current price of 0.85 is above the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.86, and below the 200-day MA of 0.86, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:HMN.

Ascott Residence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMN	78 Outperform	S$3.24B	14.19	5.22%	6.97%	3.18%	-0.50%
Y92	75 Outperform	$12.69B	12.41	15.00%	4.64%	18.38%	-3.55%
G13	73 Outperform	S$8.81B	15.21	7.03%	5.70%	4.65%	-5.33%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%

Ascott Residence Corporate Events

CapitaLand Ascott Trust Issues Stapled Securities for Management Fees

CapitaLand Ascott Trust has announced the issuance of 5,182,200 stapled securities as payment for management fees for the period from January 1, 2025, to March 31, 2025. The issuance is directed to Somerset Capital Pte Ltd, a subsidiary of CapitaLand Investment Limited, as part of a strategic move to manage financial operations efficiently, potentially impacting the trust’s financial structure and stakeholder interests.

CapitaLand Ascott Trust Hosts Annual General Meeting

CapitaLand Ascott Trust held its Annual General Meeting on April 17, 2025, at the Marina Bay Sands Expo and Convention Centre in Singapore. The meeting was attended by stapled securityholders, proxies, and directors of the management companies. Key figures such as the Chairman and CEO were present, indicating the importance of the meeting in discussing the company’s operations and strategic direction.

CapitaLand Ascott Trust Issues Stapled Securities for Management Fees

CapitaLand Ascott Trust has announced the issuance of 15,222,357 stapled securities as partial payment of management fees. These securities have been allocated to Somerset Capital Pte Ltd, a subsidiary of CapitaLand Investment Limited, at an issue price of S$0.8708 per security, reflecting a strategic move to manage financial obligations and maintain operational efficiency.

CapitaLand Ascott Trust Recognized in S&P Global Sustainability Yearbook 2025

CapitaLand Ascott Trust has been recognized as the only lodging trust in Asia Pacific included in the S&P Global Sustainability Yearbook 2025, achieving ‘Industry Mover’ status for its significant improvements in sustainability. This recognition highlights CLAS’s commitment to integrating sustainability into its operations, enhancing ESG efforts, and providing stable returns to stakeholders, while also aiming to green its entire portfolio by 2030.