Eagle Hospitality Trust

[cfa]

What had convinced me into buying  this counter :

1) Share  was sold down from 0.78 to 0.655 which was 16% from IPO price. This should be more than enough to compensate the total loss of  value of The queen Mary asset ( If this do happen eventually ).

2)Singapore, 5 September 2019 – Eagle Hospitality REIT Management Pte. Ltd., as manager (the “REIT Manager”) of Eagle Hospitality Real Estate Investment Trust (“EH-REIT”), and Eagle Hospitality Business Trust Management Pte. Ltd., as trustee-manager (the “Trustee-Manager”, collectively with the REIT Manager, the “Managers”) of Eagle Hospitality Business Trust (“EH-BT”), is pleased to announce that Eagle Hospitality Trust (“EHT”) is to be included as a constituent stock of the Global Property Research (“GPR”) / Asia Pacific Real Estate Association (“APREA”) Composite Index and the GPR/APREA Composite REIT Index. The constituent changes will become effective at the start of trading on 23 September 2019

3)Eagle’s lease agreements as structured as master leases with the tenants using a combination of fixed and variable rents:

• Based on the Projection Year 2020, Fixed Rent (FR) accounts for 66.0% of rental income
  
  
• The remaining 34.0% of its rental income is pegged to the Gross Operating Revenue (GOR) and Gross Operating Profit (GOP):
  
  • 71.3% of Variable Rent (VR) based on gross operating revenue
    

This gives the trust some form of stability, downside protection and is less exposed to fluctuation and seasonal profitability. At the same time, this gives upside to investors during high growth periods.

[b] [/b]4)Domestic guests: About 91.9% of its guests are domestic travellers - ie, US, Canada and Mexico residents. In other words, Eagle Hospitality Trust thrives mainly on a booming US economy (and is not susceptible to fluctuations in travellers from China, for example).