Ascott Residence (HMN) AI Stock Analysis

• Market Cap: $3.36B
• Dividend Yield: 8.07%
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.58
• Revenue Growth: 3.18%
• EPS Growth: -0.50%
• Country: SG
• Employees: 40,000
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Diversified
• EPS (TTM): 0.06
• Shares Outstanding: 3,819,578,900
• 10 Day Avg. Volume: 5,833,740
• 30 Day Avg. Volume: 4,448,423
• PEG Ratio: -0.48
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.00
• 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: $1.11
• Price Target Upside: 26.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 79 Outperform
• Price Target: S$1.00 ▲(13.64%Upside)

The stock of Ascott Residence has a strong overall score, driven by solid financial performance and attractive valuation. The company's strong revenue and profit growth, coupled with a high dividend yield, make it an appealing investment in the REIT sector. Technical analysis shows moderate positive momentum, supporting the overall positive outlook.

Positive Factors

Dividend Yield

The current share price implies a dividend yield of 7%, which is attractive to income-focused investors.

Geographical Diversification

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

Strategic Acquisitions

CLAS acquired two hotels in Japan, focusing on portfolio reconstitution in one of its best-performing markets, indicating a strategic growth initiative.

Negative Factors

Financial Risk

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

Operating and Interest Costs

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

Tariff Disputes

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

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 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

Ascott Residence demonstrates strong financial performance with consistent revenue and profit growth. Its balance sheet shows a well-managed capital structure, although increasing debt levels warrant monitoring. Cash flow generation is robust, supporting future growth prospects.

Income Statement

The company has demonstrated strong revenue growth over the years, with a notable increase of 8.7% from 2023 to 2024. Gross profit margin stands at 45.8%, indicating efficient cost management. The net profit margin improved to 29.8%, reflecting strong profitability. However, EBITDA margin decreased slightly from the previous year, which could suggest rising operational costs.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.72, suggesting a balanced capital structure. Return on equity is robust at 5.1%, indicating good returns on shareholders' investments. The equity ratio of 54.1% ensures stability, but the increasing debt levels could pose future risks if not managed effectively.

Cash Flow

Operating cash flow to net income ratio is solid at 1.31, showing strong cash generation relative to net income. Free cash flow grew significantly by 107.1% from 2023 to 2024, highlighting efficient cash utilization. However, the reliance on financing activities warrants attention to maintain liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	809.52M	744.56M	621.24M	394.41M	369.87M
Gross Profit	335.13M	304.03M	282.82M	173.29M	149.60M
EBITDA	450.74M	466.88M	358.60M	305.42M	105.34M
Net Income	241.18M	231.25M	223.31M	309.32M	-222.55M
Balance Sheet
Total Assets	8.82B	8.73B	8.02B	7.73B	7.16B
Cash, Cash Equivalents and Short-Term Investments	644.05M	432.81M	363.63M	346.33M	486.70M
Total Debt	3.41B	3.32B	3.15B	3.01B	2.75B
Total Liabilities	3.98B	3.90B	3.58B	3.37B	3.12B
Stockholders Equity	4.77B	4.75B	4.36B	4.29B	3.96B
Cash Flow
Free Cash Flow	286.98M	138.57M	233.79M	38.75M	42.76M
Operating Cash Flow	317.15M	300.65M	282.32M	145.63M	74.09M
Investing Cash Flow	176.45M	-300.98M	-308.82M	-538.55M	296.10M
Financing Cash Flow	-260.28M	165.47M	71.17M	258.63M	-166.47M

Ascott Residence Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.88 is above the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.86, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, 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	79 Outperform	$3.36B	14.69	5.22%	8.07%	3.18%	-0.50%
Sector *	59 Neutral	C$1.23B	0.76	-8.20%	5.62%	9.89%	-25.14%
CDHSF		$774.11M	71.28	0.77%	6.79%	―	―
JYEU	67 Neutral	S$1.28B	21.78	3.16%	6.84%	-8.34%	-22.51%
Q5T	65 Neutral	S$1.13B	24.14	2.51%	7.43%	0.84%	-64.42%
ACV	62 Neutral	S$1.35B	74.47	1.45%	3.75%	7.02%	-79.65%
TS0U	55 Neutral	S$1.60B	8.06	-1.97%	7.79%	-1.51%	-135.46%

Ascott Residence Corporate Events

CapitaLand Ascott Trust Secures S$50 Million Sustainability-Linked Loan

CapitaLand Ascott Trust has entered into a facility agreement with The Bank of East Asia, Limited, Singapore Branch, for a sustainability-linked term loan facility of up to S$50,000,000. This agreement includes specific conditions related to the unitholding interests of controlling unitholders and the role of the BT Trustee-Manager. As of the announcement date, there have been no breaches of these conditions, indicating stable compliance with the terms of the loan, which could positively impact the company’s financial operations and stakeholder confidence.

The most recent analyst rating on (SG:HMN) stock is a Buy with a S$1.13 price target. To see the full list of analyst forecasts on Ascott Residence stock, see the SG:HMN Stock Forecast page.

CapitaLand Ascott Trust Prices S$260 Million Perpetual Securities

CapitaLand Ascott Trust Management Limited, managing CapitaLand Ascott Real Estate Investment Trust and CapitaLand Ascott Business Trust, announced the pricing of S$260 million 4.20% subordinated perpetual securities under its S$2 billion multicurrency debt issuance programme. This financial move is expected to enhance the company’s capital structure and provide flexibility for future growth, potentially impacting its market positioning and offering opportunities for stakeholders.

The most recent analyst rating on (SG:HMN) stock is a Buy with a S$1.13 price target. To see the full list of analyst forecasts on Ascott Residence stock, see the SG:HMN Stock Forecast page.

CapitaLand Ascott Trust Issues Stapled Securities for Acquisition

CapitaLand Ascott Trust Management Limited has issued 3,007,741 stapled securities to pay the acquisition fee for lyf Funan Singapore. This issuance increases the total number of stapled securities to over 3.8 billion, with the REIT Manager holding a small percentage, reflecting its strategic growth in the hospitality sector.

The most recent analyst rating on (SG:HMN) stock is a Buy with a S$1.13 price target. To see the full list of analyst forecasts on Ascott Residence stock, see the SG:HMN Stock Forecast page.

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.