Ascott REIT's unitholders' distribution increases 14% to S$27.6 million for 1Q 2013
Singapore, 26 April 2013 – Ascott Residence Trust’s (Ascott Reit) Unitholders’ distribution increased 14% to S$27.6 million for 1Q 2013 compared with the same period last year. Distribution per unit (DPU) for 1Q 2013 rose 5% to 2.25 cents.
Revenue and gross profit for China, Japan and Germany were higher in 1Q 2013 compared with 1Q 2012 primarily because of the contributions from its newly acquired properties. Revenue in China rose 39% due to the contribution from the newly acquired Ascott Guangzhou. In Japan, revenue grew by 28% mainly because of the contribution from Citadines KarasumaGojo Kyoto and improved market sentiments. Revenue in Germany increased 140% mainly due to the contribution from the newly acquired Madison Hamburg.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “Ascott Reit has continued to deliver good returns to Unitholders despite the slower global economy due to the ongoing macroeconomic uncertainties. We successfully raised S$150 million through an equity placement which was completed on 6 February 2013. The equity placement increased our financial capacity to fund potential accretive acquisitions and expand Ascott Reit’s portfolio of quality assets. We will continue to actively look for accretive acquisitions in key gateway cities in Asia as well as London, Paris and key cities in Germany.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “In 1Q 2013, we opened Citadines Suites Louvre Paris after the property was transformed into a boutique-style luxury serviced residence. We also completed the renovation of Citadines Croisette Cannes and Citadines City Centre Lille and started to refurbish Citadines Toison d’Or Brussels and Somerset Xu Hui Shanghai this quarter. The ongoing renovation of Ascott Jakarta and Citadines Ramblas Barcelona is slated for completion in 4Q 2013. We will continue to progressively execute our asset enhancement programmes in order to grow our revenue per available unit .”
Ascott Reit makes distributions to Unitholders on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year. Following the equity placement, Ascott Reit made an advanced distribution of 0.617 cents per unit for the period 1 January to 5 February 2013, which was paid on 5 April 2013.
Summary of Results
1Q 2013 vs 1Q 2012
Unitholders’ distribution was higher in 1Q 2013 as it included a realised exchange gain of S$8.1 million from the repayment of foreign currency bank loans using the placement proceeds.
Revenue was lower mainly due to the divestment of Somerset Grand Cairnhill Singapore and Somerset Gordon Heights Melbourne in 2012 and lower contribution from Ascott Reit’s existing properties, mainly those in Singapore and Japan (arising from the depreciation of JPY against SGD), partially offset by the additional revenue from Ascott Raffles Place Singapore, Ascott Guangzhou, Citadines Karasuma-Gojo Kyoto and Madison Hamburg which Ascott Reit acquired last year.
Gross profit decreased mainly due to lower revenue, higher staff costs and depreciation expense.
For Ascott Reit’s 1Q 2013 financial statement and presentation slides, please visit www.ascottreit.com.