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Broker's take: Hospitality Reits' yields impressive at 5.9% to 6.8%

Tuesday, June 20, 2017 - 08:03

ACCORDING to OCBC Investment Research, some hospitality Reits have rallied impressively year-to-date, with yields lingering between 5.9 per cent and 6.8 per cent.

The brokerage firm cited different hoteliers who managed to record resilient yields in the first six months of the year:

CDL Hospitality Trusts (CDLHT) has jumped 22.1 per cent, perhaps on the back of DPU growth expectations, given its New Zealand asset.

Far East Hospitality Trust (FEHT) has gained 13.3 per cent year-to-date but continues to face headwinds.

OUE Hospitality Trust (OUEHT) has moved up 7.9 per cent and Ascott Residence Trust (ART) has risen 6.1 per cent.

"Given OUEHT's higher yield coupled with strong growth catalysts going forward, we see the counter as an attractive laggard play within the hospitality space," said OCBC Investment Research, making OUEHT its top pick among the hoteliers.

sentifi.com

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