Ascendas Hospitality Trust 2nd M&A : Osaka WBF Hotels

Ascendas Hospitality Trust (AHT) continues its buying spree. This should satisfied AHT appetite for a while.

At 31.8% gearing, AHT has room for another acquisition. Total proceed from China properties are  $218.7 Million SGD.  Total M&A into Korean and Osaka amounts to $226.8 Million SGD. Hence the slight increase in gearing. NAV is expect to be at 1.02 when the purchase is complete by Jan 2019. And don't forget about Shama Luxe Aurora Melbourne Central to be completed in 2H 2019. Further growth awaits.

Price to Pro Forma NAV is 0.755. It really cheap now, last time at this valuation is in 2016 period. 

Pro Froma DPU to be at 6.11. As stated on my last post, after removing one off item (looking fee), DPU for FY 2017/18 is 5.68 cents. so the adjusted Pro Froma DPU should be 5.76 cents. This is higher than FY 2016/17 of 5.68. This give a yield of  7.5% juicy yield. Click here for comparison table with other hospitality Trust.

Over all the management did a good job executing asset recycling, total Properties increase from 11 to 13 with 12 being freehold and the 3 Osaka WBF is just a few months old. As Shama Luxe Aurora Melbourne Central come in late 2019 , AHT ability to have maybe one more acquisition, completion of renovation at Sunroute Ariake, growing tourism will grow its DPU into 2019 and beyond. Forgot to add, the major reduce of airbnb houses will help hotels in japan too.

Vested avg price 0.853