Stock Idea We believe this stock is on track for a dividend r | FSMOne SG - Research Highlights

Stock Idea

We believe this stock is on track for a dividend resumption this year, with a yield of close to 5%

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• In 1H 2021, ARA US Hospitality Trust recorded a turnaround in net property income of USD 9.1 million, coming in line with our estimates and reversing from a loss of USD 2.0 million in the same period last year.

• We maintain our expectations that the Trust will record a distributable income at the end of FY2021. This paves way for a dividend resumption – which could be a major share price catalyst.

• With an increase in leisure demand, it is projected that the US hotel market will further strengthen and rebound closer to pre-pandemic levels.

• Corporate travellers have also been returning to the Trust’s hotels, helping with the progress to the next leg of the recovery.

• We maintain our target price of USD 0.63, representing an upside potential of 27%.

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: ARA US Hospitality Trust (SGX:XZL)