Analyst warns Ascott Residence Trust to brace for flat growth in Singapore

So if not Singapore, which countries will likely exhibit continued growth?

According to DBS, it’s Indonesia, Philippines, and Australia.

Here’s more from DBS:

4Q11 DPU of 1.83 Scts hit by one-offs. Revenue and gross profit inched up 3% and 2% yoy, respectively, to S$75.2m and S$40.0m. This was largely due to contribution from its acquisition of 28 serviced residences in Oct’10. On a same store basis, topline and gross profit would have stayed relatively flattish.

Distributable income of S$20.6m (DPU of 1.83 Scts) dipped 14%yoy, impacted by one-off expenses (loan transaction fees and a provision of S$2.1m for licensing related matters in China). ART also reported a net revaluation gain of S$47.4m, translating to NAV of S$1.36/unit.

Outlook turning more moderate. A generally cautious mood is prevailing among corporate clients and management will be taking a more active role towards managing portfolio performance. Nevertheless, countries like Indonesia, Philippines, Australia (contributing in total 13% of FY12F gross profit) are likely to continue to exhibit growth on the back of sustained strong demand from the oil & gas industries.

London properties (14% of gross profit) should continue to deliver a stellar performance on the back of the London Olympics in mid 2012. However, contribution from major markets, Singapore and Vietnam, are likely to remain relatively flat. On the interest costs front, we note that management has taken to term its loan out on a longer term basis, thus expect current interest rate of 3.4% to inch up by c50ps.