Charting Ascendas H Reit



Recent News

DIVESTMENT OF ASCENDAS CHINA HOTEL INVESTMENT LIMITED AND
ASCENDAS HOSPITALITY CHINA PTE LTD

Ascendas Hospitality Reit will be divesting Beijing Novotel Sanyuan and Ibis Beijing Sanyuan  for RMB1,156.4 million (or approximately S$235.9 million). Aggregate valuation of the Properties was RMB574.0 million (or approximately S$117.1 million) (“Independent Valuation”) as at 31 October 2017. Completion is expected to take place in first half of FY2018/19.

Reasons for the divestment:
  1. Agreed Purchase Price is Attractive
  2. To free up capital and provide greater financial flexibility for fund deployment towards potential acquisitions, value enhancement and/or debt repayment.

Reference: http://ir.a-htrust.com/newsroom/20180129_174423_Q1P_VBYBLFV4BCKKIEBG.1.pdf


The divestment proceed could be used for debt repayment, acquisition or other financing activities. I would be concerned with whether they can find value accretive acquisitions elsewhere to boost their rental revenues as their debt level is quite healthy. Their hospitality assets, after the divestment, will only be left with the ones in Australia, Japan and Singapore.


I will hold off this REIT for now until they announce concrete actions on their divestment capital use.

***

For more information relating to trading strategies, check out my Trading Strategies page.

Comments

Popular posts from this blog

Inflation, crypto bank run and investment updates

A review on my crypto holdings - officially in winterland

The Truth About FIRE

Quick guide: Onboarding to Defi (on Polygon)

Making sense of Defi concepts - Curve's tokenomic on Convex Finance

Disclaimer:

The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein. This blog may contain affiliate links to external sites.