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As always why bother with Fixed Income when the parent shares yield better?
Initial Yield guidance at cost
4.205% (final)
Expected Issue Size
SGD$ TBD
Denomination
SGD 250k x 250k
Timing
Today’s Business
Comments
To follow
Risk Rating
4
LV
TBA
Issuer : Ascott REIT MTN Pte. Ltd.
Guarantor : DBS Trustee Limited (in its capacity as trustee of Ascott Residence Trust)
Issuer Rating: Baa3 (Moody's)
Expected Issue Rating : Baa3 (Moody's)
Status : Direct, unconditional, unsubordinated and unsecured Notes
Format : Bearer, Reg S off Issuer's S$1.0bn Multicurrency Medium Term Note Programme ("the Programme")
Tenor : 7 years
Issue Size : TBD
Coupon : 4.205%
Coupon Payment : Fixed Rate, semi-annual, actual/365 (fixed)
Settlement Date : [23 November 2015]
Coupon Dates : [23 May] and [23 November] (First Pay: [23 May 2016])
Maturity Date : [23 November 2022]
Issue Price : 100.00
Details : SGD250k denoms, Singapore Law, SGX-ST Listing
Selling Restrictions : As per the Programme, primarily S274 & S275 of Singapore SFA
Redemption at Option of
Noteholders upon
Cessation or Suspension
of Trading of Units: At par, in accordance with the Programme
Mandatory Redemption
upon Termination of
Ascott Reit: At par, in accordance with the Programme
UOP : As per the Programme
Joint Bookrunners : DBS Bank Ltd. (B&D) & Oversea-Chinese Banking Corporation Limited
Clearing : CDP
Timing: Today's business
Comp:
ARTSP 4.3% 11/30/18 – 2.66%
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Joined: Oct 2014
17-03-2016, 04:08 PM
(This post was last modified: 17-03-2016, 04:08 PM by butcher.
Edit Reason: added link
)
ART just completed private placement of 94.787m shares at S$1.055/unit (cheap cheap) to raise gross S$100m
http://infopub.sgx.com/Apps?A=COW_CorpAn...97eb9df693
Posts: 274
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Ascott Residence Trust (ART SP): BUY
Market Cap: US$1,275m | Average Daily Value: US$0.85m
Last Traded Price: S$1.13; Price Target: S$1.33 (Upside 17.4%) (Prev S$1.33)
Analyst
Mervin Song CFA +65 6682 3715 mervinsong@dbs.com
Derek Tan +65 6682 3716 derektan@dbs.com
Second bite of the big apple
Increased US presence with second hotel acquisition in New York for S$218m
S$100m equity placement at S$1.055 to fund acquisition
0.3-1.4% uplift to FY16-18F DPU
DPU payment of 1.5-1.6 Scts to existing unitholders prior to placement
Diversified portfolio underpins resilience. We maintain our BUY recommendation on ART with S$1.33 TP. Amid the volatility in the Singapore hospitality market, we believe ART’s diversified portfolio with serviced residences and rental housing located across 14 countries in the Asia Pacific, Europe and US, provides investors with a more resilient DPU. ART’s resiliency and cashflow visibility also comes from having 40-50% of its income sourced from master leases and management contracts with minimum guaranteed income.
Crystallising value from recent acquisitions and AEIs. ART has announced c.S$1.2bn worth of acquisitions over the last 18 months, increasing total AUM by a third to S$5bn. Combined with completed and ongoing AEIs, ART should start to fully realise the benefits from these expansion plans over the next few years. This should also offset the impact from a projected increase in borrowing costs.
Assets divestments to strengthen balance sheet. While ART’s headline gearing of c.40% is comfortable, we are mindful of ART’s adjusted gearing (treating 50% of perpetual securities as debt) which stands at 43-44%. However, we understand this is temporary, as ART is reviewing its portfolio mix and looking to divest some of its lower yielding properties.
Valuation:
Consistent delivery to close the valuation gap. Following the disappointment over the impact of the rights issue in 2013 and difficulties faced by some of ART’s Chinese properties on its DPU over the past two years, we believe delivery of a more consistent DPU in the coming year will help close the discount to our TP of S$1.33.
Key Risks to Our View:
Oversupply and FX volatility. The key risk to our call is potential oversupply in ART’s key markets as well as impact from FX volatility. These risks are mitigated by ART’s diversified portfolio with no country contributing more than 20% of group NPI.
Source: DBS
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481,688,010 * 0.919 = 442,671,272
Ascott Residence Trust to do Right Issue. Pursuant to the Rights Issue, 481,688,010 new units in Ascott REIT will be offered at the rights ratio of 29 Rights Unit for every 100 existing units at an issue price of S$0.919 per Rights Unit.
More details in http://infopub.sgx.com/FileOpen/Launch_A...eID=442379
Specuvestor: Asset - Business - Structure.
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(06-03-2017, 11:16 PM)cyclone Wrote: 481,688,010 * 0.919 = 442,671,272
Ascott Residence Trust to do Right Issue. Pursuant to the Rights Issue, 481,688,010 new units in Ascott REIT will be offered at the rights ratio of 29 Rights Unit for every 100 existing units at an issue price of S$0.919 per Rights Unit.
More details in http://infopub.sgx.com/FileOpen/Launch_A...eID=442379
Ascott Residence Trust has launched a fully underwritten renounceable rights issue to raise S$442.7 million. The proceeds will be used to partly fund Ascott Reit’s acquisition of its first property in Frankfurt and its second in Hamburg from The Ascott Limited for €65.4 million (S$97.2 million) based on exchange rate of €1 = S$1.4861. The acquisitions of the two operating serviced residences, Citadines City Centre Frankfurt and Citadines Michel Hamburg, are accretive at an EBITDA yield of 5.4%.
In addition, S$381.6 million will be used to pay for Ascott Reit’s acquisition of Ascott Orchard Singapore, which is expected to be completed by 3Q 2017. After the acquisition of Ascott Orchard Singapore and rights issue, Ascott Reit’s FY 2016 distribution per unit of 8.27 cents is expected to be 7.27 cents on a pro forma basis, and this will further increase to 7.43 cents following the acquisitions in Germany.
More details in http://infopub.sgx.com/FileOpen/ART_News...eID=442390
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Ascott Reit divests two properties in China for 980m yuan
by VIVIEN SHIAO
Monday, July 3, 2017 - 18:25
ASCOTT Residence Trust (Ascott Reit) announced on Monday it has entered into two conditional sale-and-purchase agreements through its two wholly owned subsidiaries, Biyun Investments (Hong Kong) and Gaoxin Investments (Hong Kong), to divest two serviced residence properties in China for 980 million yuan (S$199 million) to an unrelated third party.
The agreed aggregate value of the two properties - Citadines Biyun Shanghai and Citadines Gaoxin Xi'an - was adjusted for bank loans and entrustment loans owed by the properties' holding companies, as well as their net current asset value at the completion date of the sale.
The properties' value of 980 million yuan is 69 per cent above the 2016 valuation of the properties. The sale price, after providing for transaction-related expenses, will contribute an estimated net gain of about 239 million yuan.
More details in http://www.businesstimes.com.sg/companie...-980m-yuan
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Ascott Residence Trust Embarks on Maiden Development Project with Acqusition of Prime Site in Singapore for S$62.4 million
Ascott Residence Trust (Ascott Reit) has acquired a prime greenfield site for S$62.4 million for its maiden development project. It will build the first coliving property in Singapore’s research and innovation business hub, one-north. Located at Nepal Hill amidst 400 companies, 800 startups and 50,000 professionals, the property is expected to be managed by its sponsor, The Ascott Limited (Ascott) under the coliving brand, lyf, targeted at the rising millennial segment. To be named lyf one-north Singapore, the property will offer 324 units . It is slated to achieve Temporary Occupation Permit by 2020 and open in 2021.
More details in :
1. http://infopub.sgx.com/FileOpen/NewsRele...eID=525638
2. http://infopub.sgx.com/FileOpen/Slides.a...eID=525639
Specuvestor: Asset - Business - Structure.
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30-08-2023, 03:59 PM
(This post was last modified: 30-08-2023, 04:00 PM by weijian.)
Previously, Sponsor CLIM gave out units as dividend in specie as part of their FY22 dividend and within 6 months, there was a rights issue - leaving minorities with a strong dis-taste. So there might be no huge surprises that this offering was really poorly received.
Sponsor's holdings before rights = 1,017,877k shares
Sponsor's holdings after rights = 1,062,099k shares
Difference = 1,062,099k - 1,017,877k = 44,222k shares
Based on 29 for 1000 shares, Sponsor was entitled to (29/1000)*1,017,877k = 29,518k shares. And so besides its entitlement, it subscribed for additional 44,222k-29,518k=14,704k shares.
So CLIM took up ~80% of the valid acceptances and applied for ~50% of the excess applications. This is really poor support from minorities!
RESULTS OF THE PREFERENTIAL OFFERING
Valid acceptances 36,836,013 36.6%
Excess applications1 28,242,063 28.1%
Total 65,078,076 64.7%
https://links.sgx.com/FileOpen/CLAS_Resu...eID=770846
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06-11-2023, 11:00 AM
(This post was last modified: 06-11-2023, 11:00 AM by weijian.)
So CLAS is trying to create value for shareholders through divesting mature assets (assuming so since they are of lower yield) and investing in higher yielding assets that are probably less mature? Will Ascott's track record help? After all, they have multiple hospitality brands - If the location and building is suitable, some of the mid tier assets peddling the Citadine/Ascott brand have a pathway to upgrade to a more luxurious one like "The Crest Collection", hence improving its valuation.
CapitaLand Ascott Trust to divest two Sydney hotels for A$109 million
The properties – Courtyard by Marriott Sydney-North Ryde and Novotel Sydney Parramatta – are located outside Sydney’s city centre. They will be sold at 5 per cent above book value with an exit yield of 4.4 per cent on an expected net gain of A$14.2 million.
Part of the proceeds will be used to partially finance the stapled group’s acquisition of three prime lodging assets in London, Dublin and Jakarta. This will be at a higher yield of 6.2 per cent, said Serena Teo, chief executive of Clas’ managers.
https://www.businesstimes.com.sg/compani...09-million
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