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Ascott Residence Trust’s (Ascott REIT) distribution per unit (DPU) soared by 62 percent to 2.16 cents in Q4 2014 compared to the same period a year ago, while its distributable income surged by 26 percent to S$33.1 million.
As a result, distributable income increased by 9 percent on an annual basis to reach a record high of S$125.6 million for the entirety of 2014.
Revenue for the quarter climbed by 13 percent to S$95.0 million, while gross profit rose 10 percent to S$45.7 million thanks to additional income from new properties purchased last year and higher contributions from existing properties.
“Ascott REIT made remarkable achievements in 2014, ending the year with a strong quarter. We acquired nine quality assets with over 1,800 units across seven cities for a total of S$559.1 million,” said Ascott Residence Trust Management (ARTML) Chairman Lim Jit Poh.
Consequently, the trust now has more than 10,500 apartments, while its total asset value has quadrupled to S$4.1 billion since its initial public offering (IPO), making it the biggest hospitality trust listed in Singapore by asset size.
“Other key achievements in 2014 were our maiden issuances of S$150 million perpetual securities and €80 million (S$123.95 million) 10-year unsecured bond,” noted ARTML CEO Ronald Tay.
“These will provide us with greater financial flexibility to further grow Ascott REIT’s portfolio. Besides actively pursuing acquisitions, we will continue to enhance our assets and are on track to complete the refurbishment of Somerset Grand Central Dalian, Somerset Olympic Tower Tianjin, Somerset Xu Hui Shanghai and Somerset Ho Chi Minh City in 2015,” he added.
Looking ahead, Ascott REIT will continue to scout for accretive acquisitions in Europe and Asia Pacific cities to further increase the returns to its shareholders. Its existing properties’ operational performance is also expected to remain healthy, given the comapny’s resilient extended-stay business model, added Lim.
Image: Ascott Raffles Place Singapore (Source: The Ascott)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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