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Ascott Residence Trust’s (Ascott REIT) distribution per unit (DPU) jumped to its highest level in the last three years as it rose 14 percent to 2.35 cents in the third quarter of 2016.
Unitholders’ distribution surged 21 percent to S$38.7 million – its highest in a quarter since the REIT’s launch 10 years ago.
In an SGX filing, Ascott REIT attributed the record-high distribution to “the realised exchange gain of S$3.3 million from the repayment of foreign currency bank loans with the divestment proceeds from Fortune Garden Apartments.”
In Q3 2016, revenue climbed nine percent to S$123.9 million, while gross profit edged up by four percent to S$57.5 million. With this, revenue per available unit (RevPAU) grew two percent to S$144.
“Ascott REIT’s entry into the US last August was a significant milestone,” said Bob Tan, chairman of Ascott Residence Trust Management Limited, the REIT’s manager.
He revealed that Ascott REIT’s two prime properties in New York have a high average occupancy of more than 90 percent, making them the biggest contributors to the trust’s strong performance.
Tan also noted that Ascott REIT is Singapore’s biggest hospitality REIT, with an asset size of around S$5 billion and the most diversified portfolio in 14 countries and 38 cities.
“When our acquisition of Ascott Orchard Singapore is completed next year, our asset size will expand to S$5.3 billion,” he said.
Ascott REIT also completed the first phase of renovation at Ascott Makati, while expecting to complete the refurbishment at Somerset Ho Chi Minh City, Somerset Millennium Makati and Citadines Barbican London by next year.
Looking ahead, Tan said the REIT will “continue to seek accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US”.
Nikki De Guzman, Editor at PropertyGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg.
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