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Ascott Residence Trust (Ascott Reit) saw its unitholders distribution and distribution per unit (DPU) for the third quarter of 2018 increase eight percent to $39.4 million and 1.82 cents respectively from the previous year.
Revenue rose six percent to $134.5 million in Q3 2018 from $126.9 million a year ago on the back of additional revenue from last year’s acquisitions, including DoubleTree by Hilton Hotel New York – Times Square South and Ascott Orchard Singapore (pictured), as well as higher revenue from existing properties.
With this, gross profit grew nine percent to $64.2 million, while revenue per available unit (RevPAU) climbed eight percent to $158.
Ascott Residence Trust Management Limited’s (ARTML) CEO Beh Siew Kim revealed that Singapore emerged as Ascott Reit’s best performing market as gross revenue surged 27 percent due to greater market demand and average daily rate.
Japan and the United States saw gross profit expand 24 percent and 21 percent respectively, while China posted a 16 percent hike due to an increase in project groups on extended stay. Australia, on the other hand, witnessed gross profit for properties under management contracts climb seven percent due to higher leisure demand, she said.
“With a debt headroom of about S$810 million, we have the financial flexibility to seek more accretive acquisitions from our sponsor Ascott and third parties, as well as re-allocate our investments into higher-yielding properties,” said ARTML chairman Bob Tan.
“Recently in September, we acquired a prime greenfield site to build our first coliving property. This will be our maiden development project which will allow us to enjoy development profits. It will broaden our earnings and strengthen Ascott Reit’s position as the largest hospitality REIT in Singapore with a diversified global portfolio.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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