SINGAPORE (July 13): The manager of Ascott Residence Trust (ART) says it is expecting its financial performance to be “adversely impacted” for 1H20 due to the global travel restrictions brought about by the Covid-19 pandemic.

In a profit guidance announcement on Monday, ART expects to reduce its income for distribution by 55% to 65% in 1H20, from the $74.6 million recorded in 1H19.

Its distribution per stapled security is expected to decline by 65% to 75% from the 3.43 cents in 1H19.

The Trust’s fair value gains or losses on properties will be recorded in the full year results due to its conducting of property valuation on an annual basis instead of a half yearly basis.

ART’s total return for 1H20 is expected to plunge 80% to 90% from the $212.5 million posted in 1H19.

Excluding the fair value gains of $140.6 million in 1H19, the Trust’s total return for 1H20 is expected to reduce by 55% y-o-y to 65%.

In its statement, the manager says ART has sufficient liquidity to meet its operational needs and financial commitments.

“However, in view of the uncertainty surrounding the COVID-19 situation, the Managers are exercising prudence in capital and cash flow management and may review the level of distribution payout to Stapled Securityholders,” it adds.

As at 10.52am, units in ART are changing hands 3 cents lower, or 2.9% down, at $1.