SGX:Q1P

Stock Analysis Report

Ascendas Hospitality Trust

Executive Summary

Ascendas Hospitality Trust (A-HTRUST) was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in July 2012 as a stapled group comprising Ascendas Hospitality Real Estate Investment Trust (A-HREIT) and Ascendas Hospitality Business Trust (A-HBT).

Rewards

Trading at 43.8% below its fair value

Earnings grew by 106.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -37% per year for the next 3 years

Dividend of 5.25% is not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has Ascendas Hospitality Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Q1P has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

Q1P

-0.3%

SG REITs

-1.4%

SG Market


1 Year Return

44.5%

Q1P

15.3%

SG REITs

0.7%

SG Market

Return vs Industry: Q1P exceeded the SG REITs industry which returned 16.1% over the past year.

Return vs Market: Q1P exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

Q1PIndustryMarket
7 Day0%-0.3%-1.4%
30 Day0.9%3.6%0.5%
90 Day2.8%1.8%1.9%
1 Year53.2%44.5%22.4%15.3%4.8%0.7%
3 Year91.7%56.6%52.1%26.0%13.7%1.6%
5 Year135.2%64.7%59.3%15.9%11.5%-7.2%

Price Volatility Vs. Market

How volatile is Ascendas Hospitality Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ascendas Hospitality Trust undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: Q1P (SGD1.12) is trading below our estimate of fair value (SGD1.99)

Significantly Below Fair Value: Q1P is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: Q1P is good value based on its PE Ratio (14.6x) compared to the REITs industry average (15.3x).

PE vs Market: Q1P is poor value based on its PE Ratio (14.6x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Q1P's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: Q1P is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Ascendas Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Q1P's earnings are forecast to decline over the next 3 years (-37% per year).

Earnings vs Market: Q1P's earnings are forecast to decline over the next 3 years (-37% per year).

High Growth Earnings: Q1P's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Q1P's revenue (2.4% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: Q1P's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Q1P's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Ascendas Hospitality Trust performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Q1P has a large one-off gain of SGD65.7M impacting its September 30 2019 financial results.

Growing Profit Margin: Q1P's current net profit margins (45.1%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: Q1P's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: Q1P's earnings growth over the past year (106.1%) exceeds its 5-year average (4.3% per year).

Earnings vs Industry: Q1P earnings growth over the past year (106.1%) exceeded the REITs industry 7.1%.


Return on Equity

High ROE: Q1P's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ascendas Hospitality Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: Q1P has a high level of physical assets or inventory.

Debt Coverage by Assets: Q1P's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: Q1P's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if Q1P has a sufficient allowance for bad loans.

Low Risk Liabilities: Q1P reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if Q1P has an acceptable proportion of non-loan assets held.

Low Risk Deposits: Q1P has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if Q1P has an appropriate level of bad loans.


Next Steps

Dividend

What is Ascendas Hospitality Trust's current dividend yield, its reliability and sustainability?

5.25%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.5%markettop25%5.5%industryaverage5.1%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: Q1P's dividend (5.25%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: Q1P's dividend (5.25%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: Q1P has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: Q1P's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84%), Q1P's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Q1P's dividends in 3 years are not forecast to be well covered by earnings (214.7% payout ratio).


Next Steps

Management

What is the CEO of Ascendas Hospitality Trust's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Juay Hiang Tan (55yo)

0yrs

Tenure

0

Juay Hiang Tan is Chief Executive Officer and Director of Ascendas Hospitality Trust. Prior to this, he was the Senior Vice- President of Real Estate Funds for Ascendas Pte. Ltd. From October 2007 to April ...


Management Age and Tenure

1.2yrs

Average Tenure

Experienced Management: Q1P's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

59yo

Average Age

Experienced Board: Q1P's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyS$211,47012 Dec 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares185,500
Max PriceS$1.14
SellS$10,90022 Nov 19
Morgan Stanley, Investment Banking and Brokerage Investments
EntityCompany
Shares10,000
Max PriceS$1.09
SellS$655,81031 Oct 19
Ascendas Hospitality Trust Management Pte. Ltd.
EntityCompany
Shares604,545
Max PriceS$1.08
SellS$303,06331 Oct 19
Ascendas Hospitality Fund Management Pte. Ltd
EntityCompany
Shares279,372
Max PriceS$1.08
SellS$191,28630 Aug 19
Yigang Tang
EntityIndividual
Shares180,000
Max PriceS$1.06
SellS$655,54705 Aug 19
Ascendas Hospitality Trust Management Pte. Ltd.
EntityCompany
Shares673,461
Max PriceS$0.97
SellS$294,82205 Aug 19
Ascendas Hospitality Fund Management Pte. Ltd
EntityCompany
Shares302,879
Max PriceS$0.97
BuyS$1,527,19313 May 19
Ascendas Land International Pte Ltd
EntityCompany
Shares1,741,978
Max PriceS$0.88
SellS$671,05113 May 19
Ascendas Hospitality Trust Management Pte. Ltd.
EntityCompany
Shares765,428
Max PriceS$0.88
SellS$856,14213 May 19
Ascendas Hospitality Fund Management Pte. Ltd
EntityCompany
Shares976,550
Max PriceS$0.88
SellS$688,06631 Jan 19
Ascendas Hospitality Trust Management Pte. Ltd.
EntityCompany
Shares877,187
Max PriceS$0.78
SellS$262,33931 Jan 19
Ascendas Hospitality Fund Management Pte. Ltd
EntityCompany
Shares334,445
Max PriceS$0.78

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Wei Seng Hon

    Joint Company Secretary

    • Mary De Souza

      Company Secretary

      • Juay Hiang Tan (55yo)

        CEO & Director

        • Tan Yoon Peng

          Head of Investments

          • Tenure: 3yrs
        • Chee Kum Tin

          Senior Manager of Capital Markets & Investor Relations

          • Yeng Yeng Woo

            Chief Financial Officer

            • Tenure: 1.2yrs
          • Grant Alchin

            Head of Australia Asset Management

            • Tenure: 0.8yrs

          Board Members

          • Michael Issenberg (59yo)

            Non-Executive Director

            • Tenure: 7.7yrs
            • Compensation: S$54.13k
          • Miguel Ko (66yo)

            Chairman of the Board

            • Tenure: 3.5yrs
            • Compensation: S$115.63k
          • Deborah Lee (62yo)

            Independent Director

            • Tenure: 2.3yrs
            • Compensation: S$79.82k
          • Kim Huat Chia (52yo)

            Lead Independent Director

            • Tenure: 2yrs
            • Compensation: S$97.20k
          • Willy Shee (70yo)

            Independent Director

            • Tenure: 2.3yrs
            • Compensation: S$74.86k
          • Juay Hiang Tan (55yo)

            CEO & Director

            • Patrick Lee (47yo)

              Independent Director

              • Tenure: 1.1yrs
              • Compensation: S$18.93k
            • Manohar Ramesh Khiatani (59yo)

              Non-Executive Director

              • Tenure: 6.6yrs
              • Compensation: S$71.45k
            • Robert van Hecker

              Independent Director

              • Tenure: 1.3yrs
              • Compensation: S$40.16k

            Company Information

            Ascendas Hospitality Trust's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Ascendas Hospitality Trust
            • Ticker: Q1P
            • Exchange: SGX
            • Founded: 2012
            • Industry: Hotel and Resort REITs
            • Sector: Real Estate
            • Market Cap: S$1.275b
            • Shares outstanding: 1.14b
            • Website: https://www.a-htrust.com

            Number of Employees


            Location

            • Ascendas Hospitality Trust
            • 1 Fusionopolis Place
            • No. 10-10 Galaxis
            • Singapore
            • 138522
            • Singapore

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            Q1PSGX (Singapore Exchange)YesStapled UnitsSGSGDJul 2012

            Biography

            Ascendas Hospitality Trust (A-HTRUST) was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in July 2012 as a stapled group comprising Ascendas Hospitality Real Estate Investment Trust (A-HREIT) and Ascendas Hospitality Business Trust (A-HBT). It was established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate used predominantly for hospitality purposes, as well as real estate related assets in connection with the foregoing. A-HTRUST’s well-diversified portfolio is valued at approximately S$1.8 billion as at 31 March 2019. A-HTRUST’s portfolio comprises 14 quality hotels, with more than 4,700 rooms, geographically diversified across key cities in Australia, Japan, South Korea and Singapore. The hotels are located in close proximity to central business districts, business precincts, suburban centres, transportation nodes and iconic tourist landmarks. A-HTRUST is managed by Ascendas Hospitality Fund Management Pte. Ltd., the manager of A-HREIT, and Ascendas Hospitality Trust Management Pte. Ltd., the trustee-manager of A-HBT. The manager and trustee-manager are wholly owned subsidiaries of Singapore-listed CapitaLand Limited, one of Asia’s largest diversified real estate groups. As of December 31, 2019, Ascendas Hospitality Trust operates as a subsidiary of Ascott Real Estate Investment Trust.  


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/03 12:52
            End of Day Share Price2019/12/16 00:00
            Earnings2019/09/30
            Annual Earnings2019/03/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.