Ascott REIT’s unitholders’ distribution up 112% to S$25.3m

And its distribution per unit increased 21% to 2.23 cents in Q3 2011.

According to a release, Ascott Residence Trust achieved a unitholders’ distribution of S$25.3 million for the quarter ended 30 September 2011, a 112% increase compared to the same period last year. Distribution per unit (DPU) for the third quarter of 2011 increased 21% to 2.23 cents.

Ascott Reit’s revenue for the third quarter 2011 increased by 57% to S$73.0 million as compared to the same period last year. In line with the increase in revenue, gross profit increased 90% to S$40.0 million. Increases in both revenue and gross profit were mainly due to the acquisition of 28 serviced residences on 1 October 2010 and better performance from the Singapore serviced residences.

Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML or the ‘Manager’) Chairman, said: “Ascott Reit has delivered another quarter of good returns to unitholders. Third quarter DPU of 2.23 cents is 21% higher than last year and 10% higher than the forecast. This is mainly attributable to the yield accretive transaction completed in October last year comprising the acquisition of 28 serviced residences and the divestment of Ascott Beijing. This transaction has enhanced Ascott Reit’s portfolio performance and has again proven the Manager’s ability in identifying and executing attractive transactions to bring better returns to unitholders.”

Mr Lim added, “Ascott Reit’s expanded portfolio now enjoys better income stability supported by our Europe properties on master leases and serviced residence contracts with minimum guaranteed income. Our income stability also stems from our multiple geographical locations which allow us to achieve income diversification across different economic conditions and cycles. These attributes coupled with prudent capital management place us in a good position to meet the challenges in an uncertain economic environment and to seize any opportunities that may arise. We will continue to focus on yield accretive acquisitions in countries where we operate and explore
opportunities in new markets."

Mr Chong Kee Hiong, ARTML’s Chief Executive Officer, said, “Ascott Reit’s revenue per available unit (RevPAU) achieved an 11% increase this quarter as compared to 3Q 2010, mainly attributable to the strong performance of the Singapore and United Kingdom (UK) serviced residences. RevPAU in this quarter has also outperformed the forecast by 6%. We will continue to actively manage the performance of the serviced residences and execute asset enhancement initiatives to optimise the yield of the portfolio.”

“Ascott Reit is evaluating the redevelopment options for Somerset Grand Cairnhill Singapore. We will make an announcement to the SGX-ST of any material development on this matter as and when appropriate in accordance with the Listing Rules of the SGX-ST. At this stage, there is no certainty of any proposed redevelopment materialising.”

Mr Chong added, “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 disclosed in the Offer Information Statement dated 13 September 2010.”