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Ascott REIT’s Q4 DPU surges 62% to 2.16 cents

SINGAPORE — Ascott Residence Trust’s (Ascott REIT) distribution per unit (DPU) in the fourth quarter surged 62 per cent from the corresponding period a year earlier to 2.16 cents, the trust manager said yesterday, as distributable income jumped 26 per cent to S$33.1 million following a year that saw it acquire nine properties across seven cities in four countries.

SINGAPORE — Ascott Residence Trust’s (Ascott REIT) distribution per unit (DPU) in the fourth quarter surged 62 per cent from the corresponding period a year earlier to 2.16 cents, the trust manager said yesterday, as distributable income jumped 26 per cent to S$33.1 million following a year that saw it acquire nine properties across seven cities in four countries.

Ascott REIT enjoyed a 13 per cent rise in revenue to S$95 million in the three months ended Dec 31, boosted by S$12 million in contributions arising from acquisitions in Fukuoka, Tokyo, Kuala Lumpur, Dalian, Wuhan, Xian and Greater Sydney, as well as a stronger S$400,000 contribution from existing properties. This was partially offset by decreases in revenue from an asset in Beijing and another in Hanoi. Gross profit rose 10 per cent to S$45.7 million in the period.

For the full year, Ascott REIT’s distributable income rose 9 per cent to a record high of S$125.6 million, while DPU fell 2 per cent to 8.2 cents. Gross profit was up 12 per cent at S$180.2 million as revenue grew 13 per cent to S$357.2 million.

Mr Lim Jit Poh, chairman of the trust manager, said: “Ascott REIT made remarkable achievements in 2014, ending the year with a strong quarter. We acquired nine quality assets with over 1,800 units across seven cities for a total of S$559.1 million … As a result, Ascott REIT’s portfolio has expanded to more than 10,500 apartment units. Its asset size has also quadrupled to S$4.1 billion since its initial public offering, making it the largest hospitality trust listed on the Singapore Exchange by total asset value.”

Ascott REIT said the operating environment will be challenging this year, noting that the global economic recovery last year was weaker than expected and that geopolitical risks remain a concern.

However, it said its resilient extended-stay business model will keep performance healthy and profitable.

“In 2015, we will continue to actively seek accretive acquisitions in key cities of Asia-Pacific and Europe to enhance unitholders’ returns,” said Mr Lim.

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