ART – BT

Ascott Trust posts 21% jump in Q3 DPU

Distributable income more than doubles, thanks to last year’s acquisitions

ASCOTT Residence Trust (ART) saw a more than one-fifth jump in third-quarter distribution per unit (DPU), with the 28 serviced residence properties added to its portfolio last year acting as a booster.

DPU for the three months ended September came to 2.23 cents, 21 per cent higher than the 1.85 cents per unit it paid out a year ago. The payout is also 10 per cent higher than ART had forecast.

Lim Jit Poh, chairman of ART’s manager Ascott Residence Trust Management Ltd (ARTML), said: ‘This is mainly attributable to the yield-accretive acquisition of the 28 serviced residences and the divestment of Ascott Beijing.’

Overall, distributable income for the July-September period more than doubled to $25.3 million, from $12.0 million the previous year.

ART completed the acquisition of the 28 properties in Singapore, Vietnam and Europe from its sponsor, The Ascott Ltd, for $969.6 million, and divested Ascott Beijing to Ascott last year. It later completed the divestment of Country Woods Jakarta, Indonesia.

These properties helped ART achieve a 57 per cent increase in revenue to $73.0 million, from $46.5 million the previous year.

Chong Kee Hiong, ARTML’s chief executive, said: ‘Ascott Reit’s revenue per available unit (RevPAU) achieved an 11 per cent increase this quarter as compared to 3Q2010, mainly attributable to the strong performance of the Singapore and United Kingdom serviced residences. RevPAU this quarter also outperformed the forecast by 6 per cent.’

ART added that it is evaluating the redevelopment options for Somerset Grand Cairnhill Singapore, although there is as yet no certainty of any proposed redevelopment materialising.

Mr Chong concluded: ‘For 2011, we expect to achieve better operating results as compared to 2010 and to deliver the forecast 2011 distribution of 7.74 cents.’

As at Sept 30, Ascott Reit’s international portfolio comprised 64 properties in 12 countries across the Asia-Pacific and Europe. ART’s units closed up half a cent at $1.01 yesterday.