SINGAPORE (April 21): The manager of Ascott Residence Trust (Ascott REIT) is declaring a DPU of 1.51 cents for 1Q17, 14% lower than the DPU of 1.75 cents a year ago.
For a same-store comparison, DPU for 1Q17 would be 1.64 cents if it was adjusted to exclude Ascott REIT’s equity placement in March 2016 to fund the acquisition of Sheraton Tribeca New York Hotel as well as contribution from the hotel. DPU for 1Q16 would be 1.57 cents if it was adjusted to exclude a one-off net realised exchange gain and the equity placement. This represents a 4% increase in DPU from 1.57 cents in 1Q 16 to 1.64 cents in 1Q 17.
For 1Q17, revenue grew 5% to $111.3 million, mainly contributed by its acquisition of Sheraton Tribeca New York Hotel in 2016. Revenue per available unit (RevPAU) notched up 2% to $128, due to higher average daily rate from Sheraton Tribeca New York Hotel.
Ronald Tay, Ascott Residence Trust Management’s Chief Executive Officer, said Ascott REIT’s properties in several markets achieved stronger operational performance.
Vietnam was the top performer with RevPAU rising 10%2 mainly because of higher demand for the refurbished apartments at Somerset Ho Chi Minh City. Besides stronger demand for its serviced residences in Vietnam, its office components that are getting almost full occupancies also increased rental income.
Elsewhere, RevPAU for Spain grew 7% as Citadines Ramblas Barcelona had more leisure travellers and higher retail income. RevPAU for Indonesia and the United Kingdom climbed 6%2 and 4% respectively due to stronger demand from corporate accounts.
Bob Tan, Ascott Residence Trust Management’s Chairman, said: “Ascott REIT’s recent successful rights issue was 182% oversubscribed. We will use the proceeds to acquire Citadines City Centre Frankfurt, Ascott REIT’s first property in the city, Citadines Michel Hamburg, and Ascott Orchard Singapore.
“When the acquisitions of the German and Singapore properties are completed, they will increase Ascott Reit’s asset size to $5.3 billion, reinforcing its position as the largest hospitality REIT in Singapore. We continue to actively seek accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US.”
As part of its ongoing active management of Ascott REIT’s portfolio, the manager recently divested 18 rental housing properties with limited growth potential for JPY12 billion ($153.6 million). The net divestment proceeds may be used to enhance Ascott Reit’s assets or fund potential acquisitions.
Units of Ascott REIT closed 0.5 cent lower at $1.095 on Thursday.
