AScott REIT

AScott REIT: FY12 results broadly in0line, with DPU at 8.76c, +2.8% YoY and NPI at $159.1m, +1% yoy, on back of higher property expenses, weaker EUR and VND, as well as weaker-than-expected REVPAU growth in SG, Vietnam. Going forward there could be further weakness in Vietnam due to the relatively weak economic backdrop, although this could be partly mitigated by stronger markets like China, Indon and the master leases. We note that at current price, stock currently trades at 6.1% yield and 1x P/B, while gearing stands at an acceptable 39%. Ratings as follow: CS maintains Neutral with $1.37 TP OCBC downgrade to Hold with $1.37 TP UOB Kay Hian maintaisn Buy with $1.59 TP