A reader saw my blog on Ascendas H-Trust earlier this year and, after doing some research, decided to invest in the Trust for income. He shared the following with me:
1. 52% of net property income is derived from Australia and this proportion could rise because of the boom in tourism. Number of international flight routes have increased with more Chinese tourist arrivals.
2. 25% of net property income is derived from Japan and tourism has been on the rise in Japan as well. The Japanese government’s drive to almost double the number of visitors to 40 million by 2020 is going to give a continued boost to the hospitality sector.
3. The Trust has a gearing level of 33%. Backed by a strong sponsor and having natural forex hedge with its debt largely denominated in local currencies are positives.
- Through Park Hotel, the Trust derives only 15% of its net property income from Singapore…