Ascott Residence Trust records 11% rise in revenue

George Sell George Sell Uploaded 28 October 2013


Singapore: Ascott Residence Trust (ART), a REIT which invests mainly in serviced apartments, has recorded an 11 per cent rise in revenue for Q3 2013.

Revenue for the quarter rose 11% to S$86.1 million mainly due to "contributions from 17 new properties acquired in the second half of 2012 and June 2013. The new properties are located in China, Germany, Japan and Singapore".

The distributions to unit-holders rose 17 per cent to S$30 million and the distribution per unit (DPU) was up to 2.37 cents for 3Q 2013 compared with the same period last year.

Revenue Per Available Unit (RevPAU) for the serviced residences fell from S$148/day in Q3 2012 to S$133/day for Q3 2013. The 10 per cent fall was mainly due to the "divestment of Somerset Grand Cairnhill Singapore, which had a relatively higher [average daily room rate] ADR, and weaker performance from Philippines and Japan."

Lim Jit Poh, chairman of Ascott Residence Trust Management Limited, the manager of ART, said: "Ascott Reit has delivered another quarter of strong unitholders' returns mainly because of our strategic acquisitions of quality assets mainly from our sponsor, The Ascott Limited. For three consecutive quarters in 2013, we achieved double-digit increase in unitholders' distribution. In October, Ascott Reit has commenced the strata sale of 81 apartment units in Somerset Grand Fortune Garden Beijing. The divestment will enable Ascott Reit to unlock value and reinvest the sale proceeds in higher yielding assets."


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