Ascott REIT's property in Singapore, Ascott Raffles Place. (Photo: REITsWeek)

OCBC Investment Research has maintained a ‘Hold’ rating on Ascott Residence Trust (Ascott REIT) amid an actively expanding property portfolio.

Ascott Limited, Ascott REIT's sponsor, announced earlier in September 2017 that it will be acquiring a serviced residences property in Jakarta, making it the largest operator of such assets in Indonesia, and five other Southeast Asian countries.

Ascott has also been making other expansions, including the acquisition of an 80% stake in Synergy Global Housing, a corporate housing provider in the US, and the increase of its stake in Quest Apartment Hotels from 20% to 80%, which makes The Ascott the largest serviced SR operator in Australasia, said OCBC.

In addition to these, Fitch Ratings has assigned the REIT a long-term issuer default rating of 'BBB' with a stable outlook, which is comparable to to peers such as CDL Hospitality Trusts.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.