Ascott REIT's 3Q 2014 distribution increases 8% to S$32.3 million
Revenue rises 9% to S$93.7 million
Singapore, 6 November 2014– Ascott Residence Trust’s (Ascott Reit) Unitholders’ distribution for 3Q 2014 grew 8% to S$32.3 million compared to 3Q 2013. Revenue for 3Q 2014 rose 9% to S$93.7 million. The increase in revenue was largely due to the additional income of S$8.5 million from new properties acquired in 2014, and stronger contribution from existing properties. In line with the increase in revenue, gross profit increased 9% to S$48.8 million.
Ascott Reit’s distribution per unit (DPU) of 2.11 cents for 3Q 2014 is 15% higher than the adjusted DPU of 1.84 cents for 3Q 2013. The adjusted DPU accounted for the effects from Ascott Reit’s rights issue in December 2013 and excluded one-off items.
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “Ascott Reit’s revenue increased consistently largely due to the acquisitions of good quality assets. This year, we have so far added nine properties with over 1,800 apartment units to our portfolio. We acquired a rental housing property in Fukuoka, a prime hotel in Tokyo as well as our first serviced residences in Kuala Lumpur, Dalian, Wuhan and Xi’an. We recently entered Greater Sydney through the acquisition of three quality assets which will continue to be operated under the Quest brand. Quest is a leading serviced apartment provider in Australia. The acquisitions will deepen Ascott Reit’s presence in the mature and stable market of Australia. Ascott Reit’s sponsor, The Ascott Limited (Ascott), also sealed a strategic partnership with Quest to invest in serviced residences in Australia. The partnership will provide a strong pipeline of properties to further grow Ascott Reit’s portfolio.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “Ascott Reit has also recently made its maiden issuance of perpetual securities of S$150 million. This strengthens our balance sheet and boosts our financial flexibility to tap growth opportunities. We will continue to actively seek accretive acquisitions in key cities of Asia Pacific and Europe to enhance returns for Unitholders.”
Mr Tay added: “Japan was our strongest performing market in 3Q 2014. Revenue for Japan surged by 26% 1 mainly due to the acquisition of Infini Garden in March this year and stronger demand for our serviced residences from corporate and leisure travellers. China continued to perform well with revenue increasing 31%1 mainly due to the acquisitions of three properties this year. Revenue for Australia grew 30%1 as a result of higher demand for the renovated apartments at Citadines St Georges Terrace Perth while revenue for Belgium increased 18%1 due to higher rental rates from the refurbished apartments at Citadines Toison d’Or Brussels.”
Summary of Results
(insert table here)
Revenue for 3Q 2014 increased mainly due to the additional revenue of S$8.5 million from Ascott Reit’s acquisitions in 2014, as well as stronger contribution of S$0.3 million from existing properties. The increase was partially offset by the decrease in revenue of S$1.2 million as Somerset Grand Fortune Garden ceased operations due to the ongoing strata sale of its apartment units.
Unitholders’ distribution for 3Q 2013 included one-off items of approximately S$1.5 million.
DPU for 3Q 2013 would be 1.84 cents if it was adjusted for the effects from the rights issue in December 2013 and excluded one-off items.
For Ascott Reit’s 3Q 2014 financial statement and presentation slides, please visit www.ascottreit.com.