Ascendas Hospitality Trust (AHT) announced a dividend of 3.13 cents for FY 2H 2017/2018. Q4 contribution is 1.72 due to one time look fee of $4.1 Million. (Anyone can explain what is look fee?)
Removing the one off item, adjusted NPI is estimated to be S$15.4 Million. That gives about 1.37 cents, flat Y-on-Y, which brings the full year DPU from 5.86 to 5.51 cents compare to 5.68 cents last year. The results is affected by Forex, competition as well as on going renovation at Sunroute Ariake.
Looking forward,gearing will drop to 26.3% (maybe higher with recent M&A) at an assumption of paying off S$160 million in debt. Proceeds from divestment should worth S$240 million, S$218.7 after fees. This give AHT headroom to take on more debt for future acquisitions. This leave us with S$58.7 million for a possible distribution of approximately special dividend of 0.05. The new Korea hotel should able to cover the short fall in DPU from the china properties.
Book value increase from 86 to 92 cents. Proceed from the sale of properties should increase to 96 cents, adjusted from AHT's pro forma estimates.
Expect more M&A from to grow AUM and DPU. Shama Luxe Aurora Melbourne Central to be ready in 2019.
Nice analysis... good job!!
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