Buy Ascott Residence Trust - 6% dividend yield

Ascott Residence Trust is a serviced residence REIT that manages hospitality, rental housing and serviced residences in Asia Pacific and Europe.

It has a well diversified portfolio with a positioning in service residences a good buffer against the coronavirus plight

ART’s portfolio will be well diversified in APAC (68% portfolio value) and Europe/America (32%), with a mere 7.2% exposure in China.

Service residences will stand a better advantage than hotels due to the lower room turnover and long-term nature of stays. Length of stays in Singapore average 2 months while that in Japan average at 2.5 months.

Indicative dividend yield is at 6.08%

If the 2002-2003 SARS, may serve as a guide, the overall impact of the virus outbreak may be modest and short lived on the global economy.

Once the outbreak is under control, the recovery should be fast.


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