Better performance is expected from US and Indonesia due to higher RevPAUs post-AEI, driven by higher occupancy and average daily rates (ADRs). The two assets undergoing AEI, Element NY Times Square and Somerset Grand Citra Jakarta, are slated for completion in 2Q19.
Maintain Buy; unchanged target price of $1.36
We reiterate our Buy on ART due to geographical diversification, upside exposure from MC and ability to acquire accretively due to S$880mn debt headroom and low cost of funding (2.3%). This translates to a dividend yield of 5.9% and a FY19e P/NAV of 0.88.