I have held Ascott since the IPO days of Ascendas Hospitality Trust (which is quite a number of years 😂). While my personal preferance is in industrial instead of hospitality reits, due to their higher yield in general and a more familiar sector, I have tried to diversify somewhat to gain some other reits exposure.
Then came the infamous Covid pandemic and global travel was devastated. 3+ years on and the hospitality sector is still on this painful recovery. Of course the rapid rise of USA interest rates was a double whammy to highly leverage reits/trusts.
Still some green shoots of hope are starting to grow in its financials, with gross revenue, profit and DPS steadily increasing into a respectable 6.64% dividend yield for FY2023. From its latest 1Q 2024 business update, the good news seems to be continuing with possibly good 2Q results releasing on 26 July, together with 3.1c dividends estimated, forming 7% dividend yield 12months TTM.
Fed chair Jerome Powell has been speaking to Congress these two days, and is hinting on lowering interest rates soon. From CME data, there's 68% probability of a Fed cut of 25bps in Sep. Personally, I think due to USA elections in Nov, the Fed will instead choose to act independent and do nothing until after elections.
Today Reits staged a strong 4% rebound with MIT and MLT leading the way. Similarly CLAS ended up with 1.7% gain. Will it eventually form a double/triple bottom chart pattern? Only time will tell 😅
Press on Financial Warrior, you Mighty Man of Valour!
There is alot of sellers for clas.. why?
ReplyDeletemy guess is some traders might be taking some profit after the ~4% from past 2 days. Q2 results are coming out 2 weeks later, maybe there's some insider info?! Price of Reits are still not in reversal territory yet ... there's just some speculation of interest rates cuts in Sep, but it has not happened yet. Would 25bps be enough to reverse the pessimism in reits? Only time will tell :)
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DeleteIt may also be potential good results (insider info) and BBs are accumulating and at the same time preventing the share price going up by putting big selling block and scare the hell out of retail investors in order to force those contra players or timid holders to sell to them. On Friday, it was looking quite good, 90 vs 91 cents at near 5pm. Then at 5.01pm, SUDDENLY a HUGE block of 6million shares appear at 90.5 sell queue and suddenly u see ppl rushing to to sell at 89.5 cents during matching. :)
DeleteThanks Divads for your insights. Yes the BBs control the market :)
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