KIM ENG

Ascott Residence Trust - The "art" of diversification
(BUY, $1.22 - TP $1.38, ASRT.SI / ART SP, REITs)
Ascott Residence Trust (ART) reported a 58% YoY jump in revenue to $72.8m for 4Q10 due to the additional contribution from the 28 properties acquired in Oct 2010, in line with market and our expectations. Final DPU of 2.27 cts was declared. The buoyant demand in the hospitality industry especially in Singapore and United Kingdom will underpin revenue growth and our DPU forecast of 8.1 cts for FY11F. Maintain Buy with target price unchanged at $1.38.