Broker's take: Hospitality Reits' yields impressive at 5.9% to 6.8%
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Greenback recovers from PMI slump, yen closes in on 155 per dollar
Hong Kong Stock Exchange bids farewell to first woman chair
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%
Brokerage Haitong removes long-term Hong Kong unit chief Lin, appoints new head
Asia: Stocks rise on earnings optimism as US data approaches
Singapore stocks climb at Wednesday’s open; STI up 0.4%