YTL Hospitality REIT in Acquisition Mode As Yield-Accretive Assets Emerge — AmInvestment Bank (The Edge Markets)

September 3, 2021 – YTL Hospitality REIT is currently on the lookout for quality assets amid the industry downturn led by the pandemic, and does not rule out potential acquisitions in the near-to-medium term with the emergence of yield-accretive assets, said a research house.

AmInvestment Bank in a company report today said YTL Hospitality REIT highlighted that its management will remain disciplined in evaluating prospective acquisitions, favouring arrangements that provide guaranteed income such as master leases to mitigate any potential short-term post-acquisition pain as the hospitality and travel industries struggle with the damage inflicted by Covid-19 and subsequent movement restrictions.

Based on YTL Hospitality REIT’s analyst briefing yesterday, where the company shed more light on its recently-announced FY21 results, the research firm also said YTL Hospitality REIT is hopeful for a post-pandemic recovery, premised on accelerating vaccination rates in both Malaysia and Australia.

“As the company is actively engaging with its existing and new clients for forward corporate bookings, [YTL Hospitality REIT] management is confident that leisure travel will rebound quickly once the borders reopen. 

“Typically, corporate bookings contribute to more than 50% of its Australian and Malaysian portfolio. The Australian portfolio has a higher contribution of 60% and above from the local corporate travel,” the firm said. 

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