Ascott REIT Will Not Call It's Perpetual Bond

News about CapitaLand Ascott Trust

Ascott REIT has announced it will not call it's perpetual bond on 30 June 2020, its first call date. While the call is entirely optional, REITs (and banks) traditionally call their perpetual bonds on their first call date.

The hospitality trust, which deals with the sharp fall in business due to the Covid-19 pandemic, would face a difficult market if it tried to refinance the issue. On the other hand, the bond which bears a 4.68% interest rate, will reset to 2.5% plus Swap Rate on the call date, which would save the trust some interest payments.

CapitaLand Ascott Trust
Price0.980 SGD
NAV1.130 SGD
Yield (4 quarters)4.70%
Gearing35.8%