Ascott Reit's Q1 DPU up 9% to 1.28 cents

Contributions from recent acquisitions and gains reaped from asset sales boosted numbers at Ascott Residence Trust (Ascott Reit) in the first quarter.

Distribution per unit (DPU) was up 9 per cent to 1.28 cents for the three months to March 31, it announced yesterday.

This was up from the restated DPU of 1.17 cents in the same period last year.

The gain came as unit holders' distribution rose 16 per cent to $29.2 million.

This was on the back of contributions from acquisitions made last year and an exchange gain of $1.6 million after it divested two serviced residences in China.

The divestment was completed in January and reaped a net gain of $51.6 million. In February, $6.5 million of the gain was distributed.

Ascott said the remaining "may be used to enhance assets or fund potential investments".

  • AT A GLANCE

  • Revenue: $112.8 million (+1%)

    Gross profit: $48.7 million (+3%)

    Adjusted distribution per unit: 1.28 cents (+9%)

Ascott Residence Trust Management chairman Bob Tan noted: "We will continue to seek accretive investments in gateway cities while actively identifying opportunities to unlock the value of assets and redeploy the capital to higher-yielding properties."

Ascott Reit's gross revenue for the first quarter edged up 1 per cent to $112.8 million, while gross profit rose 3 per cent to $48.7 million.

Mr Tan said: "Ascott Reit's four acquisitions in Singapore, Frankfurt, Hamburg and New York last year continue to contribute to higher gross profit."

The reit has 73 properties in 37 cities across 14 countries.

Belgium was the best performer in the quarter with a 20 per cent increase in revenue per available unit (RevPAU) due to stronger demand.

RevPAU for China rose 16 per cent with the divestment of the two properties, while it was up 7 per cent in Britain due to greater leisure demand and and higher revenue from the refurbished flats at Citadines Barbican London.

Ascott said it would continue to monitor its interest rate exposure in the light of rate hikes in the United States.

About 86 per cent of its total borrowings are on fixed rates, and discussions have started with banks to refinance debts due this year ahead of their maturity dates.

Ascott Reit units closed up one cent at $1.14 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 19, 2018, with the headline 'Ascott Reit's Q1 DPU up 9% to 1.28 cents'. Print Edition | Subscribe