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Ascott Residence Trust’s (Ascott REIT) revenue rose by nine percent to S$93.7 million in Q3 2014 compared to the same period a year ago, the company revealed Thursday (6 November).
The gain is mainly attributed to higher contributions from existing properties and to the S$8.5 million additional income from assets purchased this year.
As a result, Ascott REIT’s gross profit increased by nine percent to S$48.8 million on an annual basis. Distributable income also climbed by eight percent to S$32.3 million, leading to higher distribution per unit (DPU) of 2.11 cents for the third quarter versus the 1.84 cents in Q3 2013. The adjusted DPU takes into account Ascott’s rights issue last December.
Lim Jit Poh, Chairman of Ascott Residence Trust Management, 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.”
These include a prime hotel in Tokyo, a rental home in Fukuoka and its first serviced residences in China’s Dalian, Wuhan and Xi’an, as well as Kuala Lumpur in Malaysia. In Greater Sydney, Ascott REIT acquired three quality assets which will remain under the Quest brand, one of Australia’s leading serviced apartment providers.
“Japan was our strongest performing market in Q3 2014. Revenue there surged by 26 percent mainly due to the acquisition of Infini Garden in March this year and stronger demand for our serviced residences from corporate and leisure travellers,” said the trust manager’s CEO Ronald Tay.
In China, revenue soared by 31 percent mainly because of three property acquisitions this year, while revenue from Australia surged by 30 percent due to the better demand for revamped apartments at Citadines St Georges Terrace Perth, he added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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