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Ascott Residence Trust (Ascott Reit) said on Tuesday (24 July) that its revenue rose six percent year-on-year to $130.5 million in Q2 2018, while gross profit increased by seven percent to $63.1 million.
The higher figures are attributed to last year’s acquisition of Ascott Orchard Singapore, Citadines Michel Hamburg, Citadines City Centre Frankfurt and DoubleTree by Hilton Hotel New York – Times Square South.
“In Q2 2018, higher demand boosted our revenue and gross profit in the US and the UK, particularly for our newly renovated Citadines Barbican London. Revenue and gross profit of our Singapore properties also improved with the added contribution from Ascott Orchard Singapore,” said Beh Siew Kim, CEO of Ascott Residence Trust Management Ltd (ARTML).
“In China, total revenue and gross profit decreased because we divested two lower-yielding properties in Shanghai and Xi’an.”
During the second quarter, Ascott Reit’s revenue per available unit (RevPAU) also grew six percent year-on-year to $155 thanks to stronger demand and better performance of its properties in Belgium, China and the UK.
While distributable income fell 15 percent to $39.8 million, distribution per unit (DPU) remained the same from 1.84 cents in Q2 2017.
DPU for the period under review would have increased 13 percent if a one-off item in the same period last year was excluded. This consists of a total realised exchange gain of S$11.9 million due to the completion of the sale of 18 rental homes in Tokyo and the repayment of foreign currency bank loans with the proceeds of a rights issuance in April 2017.
“Ascott Reit has been delivering stable returns to unitholders through a diversified portfolio of quality assets in major gateway cities across Asia Pacific, Europe and the US,” said ARTML Chairman Bob Tan.
He added that the trust’s asset size has soared by six-fold, while shareholder returns have surged by over 200 percent since its IPO in 2006. Shareholder returns comprise all distributions and capital appreciation of its units since listing until 30 June 2018.
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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