Ascott REIT 3Q DPU falls 28% to 1.69 cents on one-off items

Ascott REIT 3Q DPU falls 28% to 1.69 cents on one-off items

Stanislaus Jude Chan
24/10/17, 07:52 am

SINGAPORE (Oct 24): The manager of Ascott Residence Trust (Ascott REIT) has declared a distribution per unit (DPU) of 1.69 cents for the 3Q ended September, down 28% from 2.35 cents a year ago.

However, adjusted for one-off items, rights issues and equity placement, DPU would have risen by 1% to 2.18 cents, compared to adjusted DPU of 2.15 cents a year ago.

The adjustment excludes one-off realised foreign exchange gain, the effects of rights issue in March 2017 to fund the acquisitions of Citadines City Centre Frankfurt, Citadines Michel Hamburg and Ascott Orchard Singapore, as well as equity placement in March 2016 to fund the acquisition of Sheraton Tribeca New York Hotel in the US.

Revenue grew 2% to $126.9 million in 3Q17, from $123.9 million a year ago.

This was mainly contributed by the additional revenue of $4.9 million from acquisitions in 2017, partially offset by the decrease in revenue of $1.9 million from divestments.

On a same store basis, excluding the 2017 acquisitions and divestment, revenue remained at the same level as a year ago.

The group achieved a revenue per available unit (RevPAU) of $146 for 3Q17, an increase of 1% as compared to a year ago.

Gross profit grew 3% to $58.7 million, from $57.3 million a year ago.

Ascott REIT says it lowered its gearing to 31.9% as at end September as part of its proactive capital management strategy.

“Due to greater demand from leisure travellers, Belgium, Spain and United Kingdom are among our best-performing markets in 3Q 2017 with RevPAU increasing by 43%, 8% and 5% respectively,” says Beh Siew Kim, CEO of the manager.

“In Asia, RevPAU for the Philippines climbed 17% due to higher demand for the renovated Ascott Makati and Somerset Millennium Makati. RevPAU for Vietnam grew 8%, contributed by stronger corporate demand for the refurbished apartments at Somerset Ho Chi Minh City,” she adds.

Bob Tan, chairman of the manager, notes that Ascott REIT has made some $655.4 million worth of acquisitions this year.

“These acquisitions further diversify our portfolio across geographies and strengthen Ascott REIT’s position as the largest hospitality REIT with an asset size of $5.1 billion,” Tan says.

“We will continue to focus on delivering stable returns to unitholders by seeking accretive acquisitions. We are on the lookout for opportunities in key gateway cities,” he adds. “Our sponsor, The Ascott Limited, has been expanding its serviced residence portfolio globally. It allows Ascott to leverage economies of scale which will benefit our properties and build a pipeline of properties for Ascott REIT.”

Units of Ascott REIT closed 1.5 cents higher at $1.23 on Monday.

Ex-remisier Ng denies being coached; RHB trader Alex Chew admits to telling the whole truth only in third statement

SINGAPORE (Apr 23): In Day Six of the trial of John Soh Chee Wen, the defence wrapped up their cross examination of the prosecution’s first witness, former OCBC Securities remisier Ng Kit Kiat. Ng had on Monday admitted to having performed trades without third-party authorisation. The trades performed without third-party authorisation included those based on orders given by a certain Ang Cheau Hoon Alice and Kent Eng Peng Huat, both of whom are remisiers at UOB Kay Hian, for accounts held by Ang's husband Poh Sian Hong as well as Eng's wife Yew Yong Mei. When asked by Soh’s defenc....

Singapore's pre-election cabinet change sets Heng up for top job

(Apr 23): Singapore’s Finance Minister Heng Swee Keat was promoted to deputy prime minister on Tuesday, a move that further positions him to succeed Prime Minister Lee Hsien Loong. Heng will become Lee’s deputy on May 1 while retaining the finance post, the prime minister’s office said in an emailed statement. He will also continue chairing the Future Economy Council and National Research Foundation. The sole cabinet promotion bolsters the odds that 57-year-old Heng will be the ruling People’s Action Party’s choice for prime minister after the general elections, which may come ....

OUE dumps stake in Nuvest Capital with no profit or loss

SINGAPORE (Apr 22): OUE announced it had sold its 33% stake in Nuvest Capital for US$1 million ($1.36 million). The buyer was Aje Kumar Saigal who owns the other 67% of Nuvest Capital. OUE acquired its 33% stake in Nuvest Capital in 2015 for US$1 million, so it has neither made a gain nor a loss. But in 2014, OUE invested US$200 million in Nuvest Real Return Fund which is managed by Nuvest Capital. Last Nov, OUE’s executive chairman had told analysts that the company plans to redeem the fund soon as it had not been profitable. In its FY2014 annual report, OUE's investment in t....