CapitaLand Ascott's Sizeable Divestment Gains Could Offset Drag from Asset Enhancement
Dow Jones
2 hours ago
0046 GMT - CapitaLand Ascott Trust's sizeable divestment gains worth 300 million Singapore dollars could offset the drag on its distribution per unit from ongoing asset enhancement initiatives, says UOB Kay Hian's Jonathan Koh in a note. He expects the Singapore real-estate investment trust to deliver stable DPU of 6.1 Singapore cents in both 2026 and 2027 thanks to these top-ups. However, he trims his 2028 DPU projection by 5% on higher debt cost and the recent weakness of the euro and Australian dollar against the Singapore dollar. The trust likely has a 7.3% DPU yield in 2027, as its unit price has fallen 13% year-to-date, he adds. UOB KH cuts its target price to S$0.99 from S$1.03 but maintains a buy rating. Units last closed at S$0.83.
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