Ascott Reit posts 4% drop in Q4 DPU to 2.07 cents

Best Western Shinjuku Hotel in Tokyo  was one of the nine properties Ascott Reit acquired in 2014. PHOTO:
Best Western Shinjuku Hotel in Tokyo was one of the nine properties Ascott Reit acquired in 2014. PHOTO: ASCOTT RESIDENCE TRUST

SINGAPORE - Ascott Residence Trust said its distribution per unit (DPU) fell four per cent to 2.07 cents for the fourth quarter ended Dec 31, from 2.16 cents a year ago.

However, without one-off items totalling about S$6.1 million for the quarter, DPU would have fallen 18 per cent to 1.76 cents.

For the quarter, revenue jumped 26 per cent to S$119.2 million from S$95 million a year ago, mainly due to additional revenue of S$21.9 million from properties acquired in the third quarter of last year.

Stronger operating performance from existing properties also contributed to revenue growth, said Ascott Reit.

For the full year 2015, DPU was 7.99 cents, 2.6 per cent lower than the 8.2 cents for the 2014.

Said Mr Lim Jit Poh, chairman of the Reit's manager: "Ascott Reit is on track to achieve its target of S$6 billion by 2017. It is currently the largest hospitality Reit in Singapore with an asset size of S$4.7 billion, and it will grow to S$5.1 billion when its acquisition of the Cairnhill development is completed, which is expected to be in 2017."

He added that Ascott Reit will continue to seek accretive acquisitions in key cities in Australia, Japan, Europe, and the US.