Ascott REIT's 4Q 2012 Unitholders' Distribution Increases 10% to S$22.8 Million
Ascott REIT's 4Q 2012 unitholders' distribution increases 10% to S$22.8 million
Singapore, 23 January 2013 – Ascott Residence Trust’s (Ascott Reit) Unitholders’ distribution for 4Q 2012 increased 10% to S$22.8 million, compared to 4Q 2011. Distribution per unit (DPU) for 4Q 2012 is 2 cents, 9% higher than 4Q 2011. Ascott Reit’s unit price rose 37% in FY 2012 and closed at S$1.36 on 31 December 2012. DPU for FY 2012 is 8.76 cents, which represents 6.4% yield.
Revenue for FY 2012 grew by 5% to S$303.8 million and gross profit rose 1% year-on-year to S$159.1 million. The increase in revenue was mainly due to the contribution from Ascott Reit’s newly-acquired properties and stronger performance from its serviced residences in China, United Kingdom and The Philippines.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “Ascott Reit has delivered another year of good returns to Unitholders. We acquired four prime assets with excellent locations in Singapore, China, Japan and Germany which contributed to the increase in revenue and profit. Our acquisition strategies expanded Ascott Reit’s portfolio of quality assets and maintained its geographical diversification across different economic cycles.”
“We have also divested Somerset Grand Cairnhill Singapore and Somerset Gordon Heights Melbourne to unlock their values. The proceeds have been reinvested in yield accretive assets such as the new Cairnhill serviced residence to be built in Singapore. Ascott Reit will continue to capture future growth opportunities in key gateway cities.”
Mr Lim added: “Looking ahead, we are positive that Ascott Reit’s income will remain sustainable as the Asian economy continues to grow and income from our European portfolio remains stable. While the extent of the world economic recovery is uncertain, we are confident about the long term growth of the markets where Ascott Reit operates in.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “Revenue per available unit (RevPAU) for our serviced residences increased to S$145 in FY 2012. In China, our RevPAU increased by 13% due to stronger demand from customers on project assignments and expatriates who have relocated there. RevPAU for our Japan properties improved 17% after we acquired Citadines Shinjuku Tokyo and Citadines Karasuma-Gojo Kyoto. In FY 2012, contributions from overseas properties amount to 83% of gross profit.”
Mr Tay added: “In 2012, we also refreshed the look and feel of our properties which enabled us to enhance customer experience and command higher room rates. After we refurbished Citadines Prestige Trafalgar Square London, average daily rates for the property increased by as much as 50%. The refurbishment of Citadines Sainte-Catherine Brussels was completed in 4Q 2012 and we are upgrading Ascott Jakarta, Citadines Toison d’Or Brussels and Citadines Ramblas Barcelona in 2013. We will continue to strengthen Unitholders’ returns through active asset enhancement to maximise the performance of our properties.”
Summary of Results
FY 2012 vs FY 2011
Revenue grew by S$15.1 million or 5% in FY 2012 mainly due to the contribution from Citadines Shinjuku Tokyo which was acquired in December 2011 as well as Citadines Karasuma-Gojo Kyoto, Ascott Raffles Place Singapore, Ascott Guangzhou and Madison Hamburg which were acquired in 2012.
The stronger performance from Ascott Reit’s serviced residences in China, United Kingdom and The Philippines also contributed to the higher revenue. In line with the increase in revenue, gross profit grew by S$1.6 million or 1%.
4Q 2012 vs 4Q 2011
Revenue increased by S$0.6 million or 1% in 4Q 2012 mainly due to the contribution from Citadines Shinjuku Tokyo, Citadines Karasuma-Gojo Kyoto, Ascott Raffles Place Singapore, Ascott Guangzhou and Madison Hamburg.
DPU was lower in 4Q 2011 due to costs incurred for one-off events including the establishment of a US$2 billion Euro-Medium Term Note (MTN) Programme, issuance of a S$250 million MTN and provision for licensing related matters for a serviced residence in China. Excluding these one-off costs, the DPU for 4Q 2011 would have been 2.13 cents.
Ascott Reit’s distributions are made on a semi-annual basis, with the amount calculated as at 30 June and 31 December each year. For the period of 1 July to 31 December 2012, Unitholders can expect to receive their distribution of 4.238 cents per unit on 28 February 2013. The Book Closure Date is 5 February 2013.
For Ascott Reit’s FY 2012 financial statement and presentation slides, please visit www.ascottreit.com.