Acquisitions boost Ascott REIT’s profits to $46.5m in 2Q14

Both revenues and profits climbed 14%.

Ascott Residence Trust’s shareholders must be popping the champagne this evening, as the company announced today that revenue for 2Q 2014 increased 14% to S$88.1 million compared to 2Q 2013.

This was largely due to contributions of S$9.4 million from new properties acquired in 2013 and 2014, as well as stronger contribution from existing properties. In line with the increase in revenue, gross profit grew 14% to S$46.5 million.

According to Ascott REIT, “Ascott Reit’s Unitholders’ distribution for 2Q 2014 rose 8% to S$33.5 million. Distribution per unit (DPU) of 2.19 cents for 2Q 2014 is 5% higher than the adjusted DPU of 2.09 cents for 2Q 2013. This accounted for the effects from Ascott Reit’s rights issue in December 2013 and excluded one-off items of approximately S$4.0 million.”

Here’s more from Ascott REIT:

Revenue for 2Q 2014 increased mainly due to the additional revenue of S$9.4 million from Ascott Reit’s acquisitions in 2013 and 2014, as well as stronger contribution of S$2.4 million from existing properties.

The increase was partially offset by the decrease in revenue of S$1.1 million as Somerset Grand Fortune Garden had ceased operations due to the ongoing strata sale of its apartment units.

Unitholders’ distribution for 2Q 2013 included one-off items of approximately S$4.0million. DPU for 2Q 2013 would be 2.09 cents if it was adjusted for the effects from the rights issue in December 2013 and excluded one-off items.

Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “In the first quarter, we acquired a quality asset in Fukuokaand in the second quarter, we acquired our first property in Dalian. In July, we entered into conditional agreements to acquire our first serviced residences in Kuala Lumpur, Xi’an and Wuhan. The acquisitions of these three properties with prime locations are expected to increase our FY 2013 DPU by 1.2% to 8.81 cents on a pro forma basis. It will broaden Ascott Reit’s earning base, increase our total asset size to S$4.0 billion and expand our portfolio to nearly 10,000 units. We will continue to grow Ascott Reit’s portfolio through accretive acquisitions in China, Japan, Malaysia, Australia and Europe to further enhance Unitholders’ returns.”