Ascott Residence Trust (Ascott Reit) has reported a 14 per cent drop in distribution per unit (DPU) to 1.51 cents for the first quarter .

Ascott Reit said DPU for the three months to March 31 would have been 1.64 cents if it had been adjusted to exclude its share placement in March last year to fund the acquisition of Sheraton Tribeca New York Hotel, and contribution from the hotel.

DPU for the corresponding quarter last year would have been 1.57 cents if adjusted to exclude a one-off net realised exchange gain and the equity placement. This would have translated to a 4 per cent increase in DPU.

Revenue for the three months to March 31 grew 5 per cent to $111.3 million, due mainly to the purchase of the Sheraton Tribeca hotel. Revenue per available unit inched up 2 per cent to $128, due to higher average daily rate from the hotel.

Mr Bob Tan, chairman of Ascott Reit's manager, said Sheraton Tribeca continues to achieve above 90 per cent occupancy, and the Reit's asset size will grow to $5.3 billion with recent acquisitions of properties in Germany and Singapore, reinforcing its position as the largest hospitality Reit.

"As part of our ongoing active management of Ascott Reit's portfolio, we recently divested 18 rental housing properties with limited growth potential for 12 billion yen (S$153.6 million). The net divestment proceeds may be used to enhance Ascott Reit's assets or fund potential acquisitions."

Mr Ronald Tay, CEO of the Reit manager, noted that its properties in several markets achieved stronger operational performance.

He highlighted Vietnam as the top performer, with revenue per available unit rising 10 per cent, due mainly to higher demand for the refurbished apartments at Somerset Ho Chi Minh City.

Ascott Reit units yesterday closed half a cent lower at $1.09.