Acquisitions boost Ascott REIT's revenue for 2Q 2014
Revenue increases 14% and Unitholders’ distribution is up 8%
Singapore, 21 July 2014– Ascott Residence Trust’s (Ascott Reit) revenue for 2Q 2014 increased 14% to S$88.1 million compared to 2Q 2013. This was largely due to contributions of S$9.4 million from new properties acquired in 2013 and 2014, as well as stronger contribution from existing properties. In line with the increase in revenue, gross profit grew 14% to S$46.5 million.
Ascott Reit’s Unitholders’ distribution for 2Q 2014 rose 8% to S$33.5 million. Distribution per unit (DPU) of 2.19 cents for 2Q 2014 is 5% higher than the adjusted DPU of 2.09 cents for 2Q 2013. This accounted for the effects from Ascott Reit’s rights issue in December 2013 and excluded oneoff items of approximately S$4.0 million.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “In the first quarter, we acquired a quality asset in Fukuoka and in the second quarter, we acquired our first property in Dalian. In July, we entered into conditional agreements to acquire our first serviced residences in Kuala Lumpur, Xi’an and Wuhan1 . The acquisitions of these three properties with prime locations are expected to increase our FY 2013 DPU by 1.2% to 8.81 cents on a pro forma basis. It will broaden Ascott Reit’s earning base, increase our total asset size to S$4.0 billion and expand our portfolio to nearly 10,000 units. We will continue to grow Ascott Reit’s portfolio through accretive acquisitions in China, Japan, Malaysia, Australia and Europe to further enhance Unitholders’ returns.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “Revenue for China surged 60% 2 mainly due to the acquisitions of three properties in 2013 and stronger performance from existing properties. Revenue for Japan increased 70% 2 mainly due to the acquisitions of 11 rental housing properties in 2013 and Infini Garden in March 2014 as well as stronger demand for our serviced residences from corporate and leisure travellers. Revenue for Spain and Belgium were also up 18%2 and 17%2 respectively as our renovated apartments at Citadines Prestige Ramblas Barcelona and Citadines Toison d’Or Brussels were able to yield higher rental rates.”
Mr Tay added: “We will continue to actively refurbish our properties to enhance the experience for our guests and create value from the existing portfolio to maximise returns for Unitholders. We completed the refurbishment of Ascott Raffles Place Singapore in this quarter and the uplift in rental rate for the renovated units was encouraging. We have also started the upgrading of Somerset Ho Chi Minh City and the renovation of several properties in China is ongoing.”
Summary of Results
2Q 2014 vs 2Q 2013
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Revenue for 2Q 2014 increased mainly due to the additional revenue of S$9.4 million from Ascott Reit’s acquisitions in 2013 and 2014, as well as stronger contribution of S$2.4 million from existing properties. The increase was partially offset by the decrease in revenue of S$1.1 million as Somerset Grand Fortune Garden had ceased operations due to the ongoing strata sale of its apartment units.
Unitholders’ distribution for 2Q 2013 included one-off items of approximately S$4.0 million.
DPU for 2Q 2013 would be 2.09 cents if it was adjusted for the effects from the rights issue in December 2013 and excluded one-off items.
1H 2014 vs 1H 2013
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Revenue for 1H 2014 rose mainly due to the additional contribution of S$17.3 million from Ascott Reit’s acquisitions in 2013 and 2014, as well as higher revenue of S$6.8 million from existing properties. The increase was partially offset by the decrease in revenue of S$2.2 million as Somerset Grand Fortune Garden had ceased operations due to the ongoing strata sale of its apartment units.
Unitholders’ distribution for 1H 2013 included one-off items of approximately S$12.1 million.
DPU for 1H 2013 would be 3.76 cents if it was adjusted for the effects from the rights issue in December 2013 and excluded one-off items.
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 January 2014 to 30 June 2014, Unitholders can expect to receive their distribution of 3.937 cents per unit on 25 August 2014. The Books Closure Date is on 31 July 2014.
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For Ascott Reit’s 2Q 2014 financial statement and presentation slides, please visit www.ascottreit.com.