Ascott Residence (HMN) AI Stock Analysis

• Market Cap: S$3.60B
• Dividend Yield: 6.43%
• Average Volume (3M): 7.53M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.59
• Revenue Growth: 1.47%
• EPS Growth: -7.50%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.02
• Shares Outstanding: 3,831,130,600
• 10 Day Avg. Volume: 6,052,780
• 30 Day Avg. Volume: 7,530,943
• PEG Ratio: -7.57
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 4.07
• P/FCF Ratio: 11.47
• 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$1.35
• Price Target Upside: 43.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: S$1.00 ▲(6.38% Upside)

Ascott Residence's strong financial performance, characterized by robust revenue growth and healthy profit margins, is a key strength. The stock's positive technical indicators and attractive valuation further enhance its appeal. However, attention to cash flow efficiency and debt management is necessary to sustain growth.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Ascott's serviced apartments, enhancing its market position and supporting long-term profitability.

Profit Margins

Sustained high profit margins reflect operational efficiency and pricing power, which are crucial for long-term financial health and competitive advantage.

Cash Flow Growth

Improved cash generation capabilities enhance financial flexibility, enabling strategic investments and debt management, supporting sustainable growth.

Negative Factors

Debt Management

Rising debt levels may strain financial resources, limiting the company's ability to invest in growth opportunities and impacting long-term stability.

Cash Flow Efficiency

Moderate cash flow efficiency could hinder the company's ability to convert earnings into cash, affecting liquidity and financial flexibility.

Leadership Changes

Frequent leadership changes can disrupt strategic continuity and may impact the company's ability to execute long-term plans effectively.

Ascott Residence Business Overview & Revenue Model

Company Description

Ascott Residence Trust (ART) is the largest hospitality trust in Asia Pacific with an asset value of S$7.2 billion as at 31 December 2020. Having listed on the Singapore Exchange Securities Trading Limited (SGX-ST) since March 2006, ART's objective is to invest primarily in incomeproducing real estate and real estate-related assets which are used or predominantly used as serviced residences, hotels, rental housing properties and other hospitality assets in any country in the world. Ascott Real Estate Investment Trust's investment mandate will include student accommodation to be effected on 27 February 2021. ART is a constituent of the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index). ART's international portfolio comprises 86 properties with more than 16,000 units in 38 cities across 15 countries in Asia Pacific, Europe and the United States of America as at 31 December 2020. ART's properties are mostly operated under the Ascott The Residence, Somerset, Quest and Citadines brands. They are mainly located in key gateway cities such as Barcelona, Berlin, Brussels, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, London, Manila, Melbourne, Munich, New York, Paris, Perth, Seoul, Shanghai, Singapore and Tokyo. ART is a stapled group comprising Ascott Real Estate Investment Trust (Ascott Reit) and Ascott Business Trust (Ascott BT). ART is managed by Ascott Residence Trust Management Limited (as manager of Ascott Reit) and Ascott Business Trust Management Pte. Ltd. (as trustee-manager of Ascott BT), both of which are wholly-owned subsidiaries of Singapore-listed CapitaLand Limited, one of Asia's largest diversified real estate groups.

How the Company Makes Money

Ascott Residence generates revenue primarily through the leasing and management of its serviced apartments. Key revenue streams include rental income from guests who stay for short or long durations, management fees from property owners for managing their serviced apartments, and franchise fees from partners who operate under the Ascott brand. Additionally, the company benefits from strategic partnerships with corporations and travel agencies that provide a steady stream of business clients. The demand for flexible accommodation options, especially in urban centers, further enhances its earnings potential.

Ascott Residence Financial Statement Overview

Summary

Ascott Residence exhibits robust revenue growth and maintains healthy profit margins, positioning it well in the REIT industry. The balance sheet reflects a stable financial position with manageable leverage. While cash flow generation is improving, attention to cash flow efficiency and debt management will be crucial for sustaining growth.

Income Statement

Ascott Residence has demonstrated strong revenue growth, particularly in the TTM period with a 74.1% increase. The company maintains healthy profit margins, with a net profit margin of 29.28% and an EBIT margin of 36.99% in the TTM. However, there is a slight decline in gross profit margin compared to previous years, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.75, suggesting a balanced approach to leveraging. Return on equity is modest at 5.09%, indicating efficient use of equity to generate profits. The equity ratio remains strong, reflecting a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Ascott Residence shows positive free cash flow growth of 10.87% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.35, suggesting moderate cash flow efficiency. However, the free cash flow to net income ratio has decreased slightly, which may impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	821.60M	809.52M	744.56M	621.24M	394.41M	369.87M
Gross Profit	344.10M	370.95M	304.03M	282.82M	173.29M	149.60M
EBITDA	341.29M	450.74M	466.88M	233.86M	157.37M	105.34M
Net Income	240.54M	241.18M	231.25M	223.31M	309.32M	-222.55M
Balance Sheet
Total Assets	8.78B	8.82B	8.73B	8.02B	7.73B	7.16B
Cash, Cash Equivalents and Short-Term Investments	504.73M	644.05M	432.81M	363.63M	346.33M	486.70M
Total Debt	3.50B	3.41B	3.32B	3.15B	3.01B	2.75B
Total Liabilities	4.03B	3.98B	3.90B	3.58B	3.37B	3.12B
Stockholders Equity	4.68B	4.77B	4.75B	4.36B	4.29B	3.96B
Cash Flow
Free Cash Flow	283.13M	286.98M	138.57M	233.79M	38.75M	42.76M
Operating Cash Flow	313.31M	317.15M	300.65M	282.32M	145.63M	74.09M
Investing Cash Flow	-155.29M	176.45M	-296.68M	-308.82M	-538.55M	296.10M
Financing Cash Flow	-113.75M	-260.28M	64.49M	71.17M	258.63M	-166.47M

Ascott Residence Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:HMN, the sentiment is Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.94, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:HMN.

Ascott Residence Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMN	76 Outperform	S$3.60B	15.88	5.16%	6.43%	1.47%	-7.50%
JYEU	70 Neutral	S$1.82B	28.34	2.88%	8.08%	-6.64%	-12.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
Q5T	65 Neutral	S$1.24B	34.38	1.92%	7.16%	-3.65%	-69.86%
ACV	62 Neutral	―	―	―	―	7.02%	-79.65%
TS0U	56 Neutral	S$1.96B	-25.54	-2.15%	5.94%	-11.65%	-137.98%
J85	54 Neutral	S$1.03B	-585.71	-0.10%	5.91%	-2.96%	-101.38%

Ascott Residence Corporate Events

CapitaLand Ascott Trust Announces Tax Ruling on Perpetual Securities

CapitaLand Ascott Trust Management Limited, managing CapitaLand Ascott Real Estate Investment Trust and CapitaLand Ascott Business Trust, announced a tax ruling related to their S$260 million 4.20% subordinated perpetual securities issued under their S$2 billion multicurrency debt issuance programme. This announcement highlights the company’s ongoing financial strategies and its impact on their investment portfolio, potentially influencing stakeholders and market positioning.

CapitaLand Ascott Trust Issues Stapled Securities for Fee Payment

CapitaLand Ascott Trust has announced the issuance of 5,008,177 stapled securities as partial payment of management fees for the period from July 1, 2025, to September 30, 2025. These securities were issued to Somerset Capital Pte Ltd, a subsidiary of CapitaLand Investment Limited, reflecting a strategic move to manage financial obligations and maintain liquidity within the trust.

CapitaLand Ascott Trust Holds Extraordinary General Meeting

CapitaLand Ascott Trust held an Extraordinary General Meeting at Suntec Singapore Convention & Exhibition Centre on 26 September 2025. The meeting was attended by stapled securityholders, proxies, and directors of the managing entities. This gathering underscores the trust’s commitment to engaging with stakeholders and maintaining transparency in its operations.

CapitaLand Ascott Trust Issues Stapled Securities for Divestment Fee

CapitaLand Ascott Trust has issued 1,179,514 stapled securities to its REIT Manager as payment for a divestment fee related to the sale of Citadines Central Shinjuku Tokyo. This issuance increases the total number of stapled securities, impacting the company’s financial structure and potentially influencing shareholder value.

CapitaLand Ascott Secures S$70 Million Credit Facility

CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. announced that the REIT’s trustee, DBS Trustee Limited, and Sumitomo Mitsui Banking Corporation Singapore Branch have entered into a facility agreement for a S$70,000,000 uncommitted multicurrency revolving credit facility. This agreement includes a condition related to a change in the REIT Manager, which has not been breached as of the announcement date.