Ascott Residence Trust’s 4Q DPU remains flat at 2 Singapore cents

SINGAPORE (Jan 24): Ascott Residence Trust (ART) has posted a distribution per unit (DPU) of 2.04 Singapore cents for 4Q2016, relatively unchanged from 2.07 Singapore cents from a year ago.

This however brings the trust’s FY2016 DPU to 8.31 Singapore cents, 4% higher compared to 7.99 Singapore cents in the previous year.

Revenue for the quarter grew 6% to S$126.7 million, largely attributed to additional contribution from ART’s acquisition of Sheraton Tribeca New York Hotel in the US, which was completed in April 2016.

Also largely a result of the acquisition, as the hotel has a higher average daily rate compared to ART’s existing properties under its portfolio, the trust achieved a 2% higher revenue per available unit (RevPAR) of S$148 for the quarter as compared to a year ago.  

However, the higher revenue was partially offset by lower revenue from depreciation of GBP against SGD for revenue from the trust’s existing properties, mainly in China and the UK.

Gross profit grew 3% to S$58.2 million in 4Q2016 from S$56.8 million a year ago.

A distribution rate of 4.4 Singapore cents per unit has been declared for the quarter ended Dec 2016, and its payment is due on Feb 28.

“As a leading global serviced residence REIT with the most diversified portfolio in key cities around the world, ART will continue to enhance its portfolio and focus on providing stable returns to unitholders,” comments Bob Tan, chairman of the manager.

“We are actively seeking accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US. We will also look at divesting properties with limited growth potential and re-deploying the proceeds in higher yielding assets,”

“We will continue to tap the debt capital market to diversify our funding sources and secure longer term financing at an optimal cost,” adds CEO Ronald Tay.

ART is managed by Ascott Residence Trust Management Limited, a wholly-owned subsidiary of The Ascott Limited and an indirect wholly-owned subsidiary of CapitaLand Ltd.

Units of ART closed flat at S$1.17 on Monday. —

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