Ascott REIT's Unitholders' Distribution Surged 17% to S$30 Million For 3Q 2013
Singapore, 25 October 2013 – Ascott Residence Trust’s (Ascott Reit) Unitholders’ distribution surged 17% to S$30 million for 3Q 2013 compared with the same period last year. Distribution per unit (DPU) for 3Q 2013 grew 6% to 2.37 cents.
Revenue increased 11% quarter-on-quarter to S$86.1 million in 3Q 2013. This was primarily 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. In line with the increase in revenue, gross profit grew 10% to S$44.8 million in 3Q 2013.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, 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.”
Mr Lim added: “Ascott Reit will continue to enjoy stable income due to our extended stay business model and geographical diversification. To strengthen Ascott Reit’s portfolio, we will continue to actively seek acquisitions in key gateway cities in China, Japan, Malaysia, Australia as well as London, Paris and key cities in Germany.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “For 3Q 2013, Unitholders’ distribution surged 17% and we achieved strong revenue growth of 11%. Revenue for China and Germany rose 130% and 220% respectively. This was largely due to contributions from our newly acquired Ascott Guangzhou, Citadines Biyun Shanghai, Citadines Xinghai Suzhou, Somerset Heping Shenyang and Madison Hamburg. Revenue for Japan was up by 36% because of the rental housing properties we acquired in June 2013, and higher demand from corporate and leisure travellers.”
Mr Tay added: “We will continue to invest on asset enhancement initiatives in 2013 and 2014 to drive organic growth. In Belgium, revenue increased 13% following the refurbishment of Citadines Sainte-Catherine Brussels. We completed the first phase of refurbishment for both Citadines Toison d’Or Brussels and Somerset Xu Hui Shanghai in 3Q 2013, lifting average daily rates by 20% and 35% respectively for the renovated apartments. The renovation of five properties is on track. They are Ascott Jakarta, Ascott Makati, Somerset St Georges Terrace Perth, Citadines Toison d’Or Brussels and Citadines Ramblas Barcelona. Recently, seven of our serviced residences including our newly refurbished properties also won ‘Leading Serviced Apartments’ at the World Travel Awards while Ascott Raffles Place Singapore garnered ‘Best Serviced Residence in Asia-Pacific’ at the Business Traveller Asia-Pacific Awards.”
Summary of Results
3Q 2013 vs 3Q 2012
Revenue increased by S$8.7 million or 11% in 3Q 2013 mainly due to contributions from 17 properties in China, Germany, Japan and Singapore which Ascott Reit acquired in the second half of 2012 and June 2013.
RevPAU was 10% lower largely due to the divestment of Somerset Grand Cairnhill Singapore, which had a relatively higher ADR, and weaker performance from Philippines and Japan (arising from depreciation of the Japanese Yen).
In line with the increase in revenue, gross profit increased by S$4.1 million or 10% to S$44.8 million in 3Q 2013.
For Ascott Reit’s 3Q 2013 financial statement and presentation slides, please visit www.ascottreit.com.