As a backgrounder, if you have not done so, you might want to read this blog:

Ascott Residence Trust and Ascendas Hospitality Trust to become one.

It was published on Wednesday, July 3rd, 2019.

The blog here is in reply to a reader’s comment that it is a bad deal for AHT investors.

AK says…

While not fantastic, really, it isn’t that bad a deal for AHT investors.

For every AHT unit, we will get almost 0.8 unit in the combined entity.

Priced at $1.30 per unit, the deal values AHT at almost $1.04 a unit.

AHT was trading at way below its NAV (of about $1.01) for too long.

AHT Stock Fundamentals.

Also, priced at about $1.04 a unit, the yield of AHT would be about 5.76%.

At $1.30 a unit, the combined entity will provide us with a distribution yield of about 5.5% which is pretty