Income from new acquisitions and robust returns from Japan boosted Ascott Residence Trust (Ascott Reit) in the second quarter, but declining turnover from existing properties took off some of the shine.
Revenue still rose from $88.1 million last year to $98.7 million in the three months to June 30, an increase of 12 per cent. Total distributable income came in at $32.3 million, down 4 per cent, while distribution per unit stood at 2.09 cents, down 5 per cent on last year.
Revenue also rose 12 per cent for the six months, from $168.5 million last year to $188.7 million, with total distributable income dipping from $60.2 million to $59.3 million, a decrease of 1 per cent.
Mr Ronald Tay, CEO of Ascott Residence Trust Management, said yesterday the Reit's strongest growth came from its 35 properties in Japan, where revenue per available unit grew by 12 per cent year on year.
Japan is Ascott Reit's second-largest market, behind only China, and the Reit's management is hopeful the 2020 Tokyo Olympics will continue to drive demand.
Ascott Reit, a wholly owned subsidiary of CapitaLand, raised $250 million from the issuance of perpetual securities last month to fund acquisitions such as a 411-room hotel in New York's Times Square. Another $150 million in perpetual securities was issued last October.
Mr Tay said the Reit is not ruling out continuing to raise funds in this manner, especially as it works towards its target of achieving a portfolio of $6 billion by 2017.