Err on the side of caution
Synopsis: Although Ascendas Hospitality Trust offers attractive yields projected at 7.9% (FY13) and 8.0% (FY14), slowing economic growth, regulatory and policy risks of China assets and mixed hospitability market outlook of underlying assets, pose downside risk to the stability of income and sustainability of projected distributions.
Comparing with peers, the risk-reward with AHT is not favourable.
Source: NRA Capital