New properties lift Ascott Reit's Q2 DPU by 5%

SINGAPORE - Contributions from newly-acquired properties helped lift Ascott Reit's results for the second quarter.

Distribution per unit (DPU) for the three months to June 30 was up 5 per cent at 2.19 cents, after adjusting for the impact of a rights issue in December, said Ascott Residence Trust Management, the manager of the hospitality trust, on Monday.

Revenue for the second quarter came in 14 per cent higher at $88.1 million from the corresponding period a year ago, on the back of an extra $9.4 million from its new acquisitions such as Somerset Heping Shenyang, Citadines Biyun Shanghai and the Infiniti Garden rental housing property in Fukuoka.

However, the sale of strata units at its Somerset Grand Fortune Garden in Beijing hit the trust's topline by $1.1 million after operations stopped at the property, said the manager.

Overall, revenue from China rose 60 per cent in the same period, while turnover from Japan soared 70 per cent.

Distributable income for the quarter was also up 8 per cent from a year ago, as a result.

This year, the firm also inked agreements to acquire its first serviced apartment properties in Kuala Lumpur, Xi'an and Wuhan, which are expected to broaden its stream of earnings and increased its assets to $4 billion, said Mr Lim Jit Poh, chairman of the manager.

Refurbishment works at its Ascott Raffles Place Singapore was also completed in the second quarter, which led to higher contributions from rents, added Mr Ronald Tay, chief executive of the manager.

Earnings per unit for the three-month period ended June 30 was 3.43 cents, up from 3.39 cents a year ago. Net asset value per unit as at June 30 came in at $1.38, up from $1.37 as at Dec 31.

DPU for the first half of the year was up 5 per cent at 3.94 cents from a year ago, after adjusting for the rights issue. This will be paid to unitholders on August 25.

Distributable income was 3 per cent higher at $60.2 million.

"We will continue to grow Ascott Reit's portfolio through accretive acquisitions in China, Japan, Malaysia, Australia and Europe," said Mr Lim.

Ascott Reit's units closed half a cent higher at $1.265 on Monday.