Brokers' take

Ascott Residence Trust | Buy Target price: S$1.34 Jan 29 close: S$1.26 DBS Group Research, Jan 29

Consensus has a `hold' call with an average target price below Ascott Residence Trust's (ART) book value, given concerns over the decline in FY17 distribution per unit (DPU). However, in our view, this has already been well flagged in the past.

The more critical factor that would drive ART's share price is the trust's more aggressive execution over the past year of selling properties that have limited growth and recycling the proceeds into better-yielding assets. This ability to sell its properties above boo…