Ascott REITs revenue and gross profit for 1Q 2014 surge 16%
Ascott REIT's revenue and gross profit for 1Q 2014 surge 16%
Singapore, 24 April 2014– Ascott Residence Trust’s (Ascott Reit) revenue for 1Q 2014 surged 16% to S$80.4 million compared to 1Q 2013. This was largely due to contributions from new properties acquired in 2013 and stronger contribution from existing properties mainly from the United Kingdom, France, Germany and Vietnam. In line with the increase in revenue, gross profit jumped 16% to S$39.2 million in 1Q 2014.
Ascott Reit achieved Unitholders’ distribution of S$26.7 million and distribution per unit (DPU) of 1.75 cents for 1Q 2014. DPU for 1Q 2014 is 5% higher than the adjusted DPU of 1.67 cents for 1Q 2013, which was adjusted for the effects from Ascott Reit’s rights issue in December 2013 and excluded a one-off realised foreign exchange gain of S$8.1 million in 1Q 2013.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “We continued to acquire quality assets in 1Q 2014 to enhance Ascott Reit’s portfolio. We acquired our first serviced residence in Dalian and a second property in Fukuoka after our successful rights issue in December 2013. With a stronger balance sheet, we are able to pursue acquisitions efficiently to maximise returns for Unitholders. We will continue to look for acquisitions in key gateway cities in China, Japan, Malaysia, Australia and Europe.”
Mr Lim added: “The International Monetary Fund forecasts global economic growth of 3.6% in 2014 and 3.9% in 2015. We expect our properties’ performance to remain stable as the global economy strengthens. Ascott Reit’s extended stay business model and geographical diversification will continue to provide income stability.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “Besides acquisitions which led to revenue growth, we saw strong performance for our operations in several markets. Revenue per available unit (RevPAU) for Japan, United Kingdom and Belgium grew 18% 1 , 13%1 and 11%1 respectively. This was mainly due to strong demand from corporate and leisure travellers. We are also seeing signs of improvement for our properties in Singapore and Vietnam due to higher demand from executives on project assignments.”
Mr Tay added: “We will continue to focus on active asset enhancement initiatives to upgrade our properties by reconfiguring the layout of public space and apartments to maximise returns and enhance customer experience. The ongoing refurbishment of Ascott Raffles Place Singapore and Somerset Olympic Tower Tianjin will be completed this year. We will also commence the refurbishment of Somerset Ho Chi Minh City, Citadines Barbican London and phase two renovation of Somerset Xu Hui Shanghai.”
Summary of Results
1Q 2014 vs. 1Q 2013
(insert table here)
Revenue for 1Q 2014 increased mainly due to the additional revenue of S$7.9 million from Ascott Reit’s acquisitions in 2013 and stronger contribution of S$4.3 million from existing properties. The increase was partially offset by the decrease in revenue of S$1.0 million from Somerset Grand Fortune Garden arising from the ongoing strata sale of its apartment units.
Unitholders’ distribution was higher in 1Q 2013 as it included a one-off realised foreign exchange gain of S$8.1 million. This arose from the repayment of foreign currency bank loans using the proceeds from Ascott Reit’s equity placement in February 2013 before it deployed the proceeds to fund acquisitions.
DPU for 1Q 2013 was adjusted for the effects from the rights issue in December 2013 and excluded the one-off realised foreign exchange gain in 1Q 2013.
For Ascott Reit’s 1Q 2014 financial statement and presentation slides, please visit www.ascottreit.com.