Ascendas Hospitality Trust

[bran]

kopikat, if i recall correctly, the current yield considers the sponsor give-up right? the yield should fall next year?

[KopiKat]

kopikat, if i recall correctly, the current yield considers the sponsor give-up right? the yield should fall next year?

Yes, for FY13 (Mar), which just ended recently, the DPU is supported by sponsor waiver to their entitlement. For FY14, no such waiver.

But, in the IPO prospectus, the projected FY14 DPU = 7.07ct, which translates to Yield = 8% @ $0.88 (IPO Price). As the current acquisition doesn't appear to be yield accretive, the DPU will likely be lower.

Why is this possible? I noticed for FY13, there's a huge 'Other Trust Expenses' = $43,409,000 (IPO forecast = $49,903,000) which was briefly described as,

Other trust expenses included stamp duty and other costs. Stamp duty paid was mainly for the acquisition of the properties located in Australia.

It appears to be mainly non-recurring (for FY14, projected to be $1,619,000) and that's why they were able to project the DPU for FY14 to be ~8% Yield even without the sponsor waiver.

[bran]

Thanks for pointing it out Kopikat!

[Nick]

Ascendas Hospitality Seeks Japan Hotel Acquisitions on Abenomics
By Pooja Thakur - Jun 14, 2013 8:27 AM GMT+0800

http://www.bloomberg.com/news/2013-06-14...cmpid=yhoo [Article]

(Not Vested)

[KopiKat]

For those of you who are entitled to the 2-for-25 Rights @ $0.88 and if you're planning to subscribe for it, please take note that you'd be better off buying from the open market (ie. don't subscribe for the rights) if,

1. Planning to subscribe for at least 6000 shares (entitlement + excess)
2. Market Price $0.875 or lower
3. Brokerage 0.28% or $25 min.

Compute on your own spreadsheet to verify.

[KopiKat]

Q114 (Jun) Results below IPO forecast, mainly due to strong S$ ie. A$ & JPY weaker. Yield heading from 8% towards 6%....

[Image: 2nuriuu.jpg]

Press Release
Presentations
Financials

[felixleong]

12% drop in DPU is really awful, can't they partial hedge the currencies?

[KopiKat]

12% drop in DPU is really awful, can't they partial hedge the currencies?

A further breakdown, gives a better picture. Looks like the biggest culprit is Australia... and not mainly weak A$...

[Image: 21adzea.jpg]

[poseidonlee]

wah ... left $0.735! Sian! Feel like buying more to average down the price.

[touzi]

If I annualize the latest DPU of 1.61 cts, the yield based on current price of $0.74 is 8.7% ! I find this quite unbelievable. Did I miss out something? Is this high yield because the outlook in Australia not positive? I tend to think that the tourism related industry in Australia should continue to do well. Any views? Thanks.