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Ascott Residence Trust (Ascott Reit) announced on Friday (26 January) that its distributable income surged by 30 percent year-on-year to $43.9 million in Q4 2017.
The strong growth is attributed to contributions from its acquisitions in 2017 as well as a one-off distribution of $6.5 million, which is part of the gain from the divestment of Citadines Biyun Shanghai and Citadines Gaoxin Xi’an in China.
Ascott Reit’s revenue also increased by six percent to $134.5 million on an annual basis in the fourth quarter, while gross profit rose at the same rate to $61.8 million.
At the same time, its overall revenue per available unit (RevPAU) grew five percent to $155 per day. In particular, that in Singapore increased by six percent thanks to robust demand from companies.
“In Q4 2017, RevPAU for Belgium increased by 22 percent due to stronger corporate demand, while that for the Philippines grew 13 percent mainly due to increased revenue from the upgraded Somerset Millennium Makati. Higher revenue from the refurbished apartments at Somerset Xu Hui Shanghai and greater long-stay demand at Somerset Olympic Tower Tianjin also helped to boost the RevPAU for China by 12 percent,” said Beh Siew Kim, Chief Executive of Ascott Residence Trust Management Ltd (ARTML).
Although its distribution per unit (DPU) remained unchanged at 2.04 cents versus the same period in 2016, it climbed by seven percent to 2.07 cents from 1.93 cents if adjusted for one-off items, rights issue and divestment gain.
For the whole of 2017, the trust’s distributable income rose 13 percent to reach an “all-time high” of $152.23 million, noted ARTML Chairman Bob Tan.
Over the same period, Ascott Reit’s revenue increased by four percent to $496.3 million on a yearly basis, whereas gross profit edged up by two percent to $226.9 million.
RevPAU also improved by three percent to $144 per day, but DPU fell by 14 percent from 8.27 cents in 2016 to 7.09 cents last year. Nevertheless, it grew five percent from 7.59 cents to 7.99 cents if adjusted for the one-off item, rights issue, equity placement and divestment gain.
This article was edited by Keshia Faculin.
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