1. Homepage
  2. Equities
  3. Singapore
  4. Singapore Stock Exchange
  5. ARA US Hospitality Trust
  6. News
  7. Summary
    XZL   SGXC80011726

ARA US HOSPITALITY TRUST

(XZL)
  Report
Delayed Singapore Stock Exchange  -  01:24 2022-08-18 am EDT
0.4750 USD    0.00%
08/04Singapore Shares End Lower; Capitaland Investment Climbs 2% as Lodging Unit Acquires Freehold Asset in Japan
MT
08/04ARA US Hospitality Trust Posts DPS in H1
MT
08/03ARA US Hospitality Trust Announces Cash Dividend for the Period from 1 January 2022 to 30 June 2022, Payable on 26 September 2022
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Singapore hospitality trusts seen as ripe for more take-private deals

06/15/2022 | 11:35pm EDT
FILE PHOTO: Buildings are shrouded by haze in Singapore

SINGAPORE (Reuters) - Deals to take private Singapore's real estate investment trusts (REITs) are expected to gain momentum as the companies reel under rising interest rates and fierce competition to buy assets, bankers and analysts said.

The trend in the sector, which is worth $7 billion, was underscored by a proposal this week by Frasers Property Ltd (FPL), part of Thai tycoon Charoen Sirivadhanabhakdi's TCC Group. FPL wants to take private its unit Frasers Hospitality Trust in a deal that values the target at $1.35 billion ($973 million).

Hospitality REITs count large groups as their main shareholders. There has been a wave of consolidation among REITs in other sectors over the past couple of years as companies have sought scale and have expanded overseas.

Prospects of a surge in take-private deals come against the backdrop of the industry's damage from the COVID-19 pandemic and its disruption to travel and tourism.

"For the moment, hospitality and retail REITs which are sub-scale and trade at a big discount to now-lower net asset value (NAV) may be targets," said Quiddity Advisors analyst Travis Lundy, who publishes on the Smartkarma research platform.

Singapore's REIT market is dominated by retail investors attracted to the firms' high dividends. REITs in Singapore must pay out 90% of their rental income, whereas a similar form of investment, called property trusts, need not.

"In hospitality REITs and commercial REITs, takeovers are scale-merit opportunities but take-privates like Frasers are really more about corporate strategy and opportunism than about industrial logic," said Lundy.

Singapore had 44 REITs and property trusts with a combined market value of S$117 billion, according to Singapore Exchange research published in May.

Frasers Hospitality Trust (FHT) has the second least valuable collection of assets among five listed hospitality trusts on the Singapore bourse. Others include Ascott Residence Trust, CDL Hospitality Trusts and Far East Hospitality Trust.

The other is diversified OUE Commercial REIT, which has investments in both commercial and hospitality sectors.

FHT's net asset value has declined since its listing in 2014, partly because of the sector's muted growth and the strengthening of the Singapore dollar against its operating currencies, it and FPL said.

"The proposed privatization of Frasers Hospitality Trust by its sponsor should result in a positive kneejerk reaction on hospitality S-REITs (REITs in Singapore) which are still trading at discounts to their NAVs as valuation plays catch-up in the face of the ongoing hospitality recovery," said Citi analyst Brandon Lee.

He said in a report he expected the deal to result in "deeper evaluation by sponsors managing REITs currently trading at deep discounts to NAVs, as assets under management growth becomes increasingly challenging in the face of the rising cost of capital, especially for the smaller ones."

The offer price of S$0.70 a share for FHT represented a 44% premium to its volume-weighted average price in the 12 months to April 7, the day before a strategic review was announced.

The offer valued it at 1.07 times its NAV, while FHT's peers trade at lower valuations, analysts said. FHT said its small size had limited its ability to reap benefits from its listing.

"There's so much competition to buy assets, even from private equity players. With interest rates rising, funding assets to boost scale becomes even more challenging," said one banker familiar with REIT deals.

($1 = 1.3896 Singapore dollars)

(Reporting by Anshuman Daga; Additional reporting by Gaurav Dogra in Bengaluru; Editing by Sumeet Chatterjee and Bradley Perrett)

By Anshuman Daga


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ARA US HOSPITALITY TRUST 0.00% 0.475 Delayed Quote.-5.00%
ASCOTT RESIDENCE TRUST 0.00% 1.15 Delayed Quote.11.65%
BRITISH POUND / SINGAPORE-DOLLAR (GBP/SGD) -0.02% 1.66394 Delayed Quote.-8.61%
CDL HOSPITALITY TRUSTS -1.54% 1.28 Delayed Quote.11.11%
EURO / SINGAPORE-DOLLAR (EUR/SGD) 0.09% 1.40742 Delayed Quote.-8.59%
FAR EAST HOSPITALITY TRUST 0.00% 0.635 Delayed Quote.7.63%
FHT HOLDINGS CORP. -14.81% 23 Delayed Quote.42.11%
FRASERS GROUP PLC -0.84% 890.5 Delayed Quote.15.50%
FRASERS HOSPITALITY TRUST 0.00% 0.705 Delayed Quote.51.61%
FRASERS PROPERTY LIMITED 0.00% 1.05 Delayed Quote.-7.89%
INDIAN RUPEE / SINGAPORE-DOLLAR (INR/SGD) -0.22% 0.017371 Delayed Quote.-3.87%
MSCI SINGAPORE (GDTR) -0.66% 5698.44 Real-time Quote.-8.63%
OUE COMMERCIAL REAL ESTATE INVESTMENT TRUST -1.33% 0.37 Delayed Quote.-14.77%
US DOLLAR / SINGAPORE-DOLLAR (USD/SGD) 0.21% 1.38473 Delayed Quote.2.19%
All news about ARA US HOSPITALITY TRUST
08/04Singapore Shares End Lower; Capitaland Investment Climbs 2% as Lodging Unit Acquires Fr..
MT
08/04ARA US Hospitality Trust Posts DPS in H1
MT
08/03ARA US Hospitality Trust Announces Cash Dividend for the Period from 1 January 2022 to ..
CI
08/03ARA US Hospitality Trust Reports Earnings Results for the Half Year Ended June 30, 2022
CI
07/12Singapore Shares Close Higher; ARA US Hospitality Trust Jumps 2% on Closing Hyatt Place..
MT
07/12An unknown buyer acquired Hyatt Place Chicago Itasca from ARA US Hospitality Trust for ..
CI
07/11ARA US Hospitality Trust Sells Hyatt Place Chicago Itasca
MT
07/01Singapore Shares End Week in Red; ARA US Hospitality Trust Slips 1% on Selling Four Hya..
MT
07/01ARA US Hospitality Trust Selling Four Hyatt Place Hotels in US for Nearly $33 Million
MT
06/30Three Wall Capital, LLC agreed to acquire Hyatt Place Pittsburgh Cranberry, Hyatt Place..
CI
More news
Financials (USD)
Sales 2022 151 M - -
Net income 2022 3,40 M - -
Net cash 2022 333 M - -
P/E ratio 2022 80,5x
Yield 2022 7,12%
Capitalization 269 M 269 M -
EV / Sales 2022 -0,42x
EV / Sales 2023 -0,38x
Nbr of Employees -
Free-Float 63,7%
Chart ARA US HOSPITALITY TRUST
Duration : Period :
ARA US Hospitality Trust Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ARA US HOSPITALITY TRUST
Short TermMid-TermLong Term
TrendsBullishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 1
Last Close Price 0,48 $
Average target price 0,70 $
Spread / Average Target 47,4%
EPS Revisions
Managers and Directors
Jin Yong Lee Chief Executive Officer
Hong Liang Ling Finance Director
Stephen Ray Finch Independent Non-Executive Chairman
James S. Jung Director-Investments
Yuen Thio Independent Non-Executive Director