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Citadines Ramblas Barcelona in Spain, where gross profit for 3Q 2019 increased by 13% due to stronger leisure demand. Image source: CapitaLand
Ascott Residence Trust (Ascott Reit) saw its distribution per unit (DPU) increase 5% to 1.91 Singapore cents in the third quarter of 2019, from 1.82 cents over the same period last year.
Unitholders distribution, which included a one-off partial distribution of $4 million from Ascott Raffles Place Singapore’s divestment, rose 6% to $41.6 million from $39.4 million previously.
Gross profit climbed 1% to $65 million, with its Belgium and Spain portfolios registering a 29% and 13% hike in gross profit on the back of stronger leisure demand. Its Vietnam and United Kingdom portfolios also posted a 7% and 5% increase in gross profit.
Meanwhile, the Reit’s revenue dipped 2% to $132.4 million from $134.5 million, mainly due to the $2.3 million decline in revenue from Ascott Raffles Place Singapore’s divestment.
Revenue per available unit (RevPAU) also dropped 2% to $155 per day.
Ascott Reit’s proposed combination with Ascendas Hospitality Trust (A-HTRUST), which received strong approval from unitholders, is expected to be completed by end-2019.
The new Ascott Reit-Business Trust stapled units under the combined entity are set to begin trading on the Singapore Exchange on 2 January 2020.
“With a debt headroom of about $1.1 billion, we have the capacity to pursue yield-accretive acquisitions, development and conversion projects,” said Beh Siew Kim, chief executive officer of Ascott Reit’s manager.
“Post-combination, we will continue to have the mandate to acquire lodging assets in any part of the world. Besides Asia Pacific, we will also keep a lookout for quality assets in Europe and the USA. lyf one-north Singapore, our maiden development project and co-living property, is on track to open in 2021. Post-completion of Ascott Reit’s combination with AHTRUST, we will review the combined portfolio to assess opportunities for asset enhancements to maximise returns.”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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