Ascott Reit achieves S$10.3 million unitholder's distribution for 1Q 2010

Company earned S$20mln 1Q 2010 gross profit as geographical diversification continues to provide group income stability.

Ascott Residence Trust (Ascott Reit) achieved revenue of S$43.5 million and gross profit of S$20.1 million for the period 1 January to 31 March 2010, which are respectively 3 percent and 1 percent higher than the same period last year. Unitholders' distribution1 is S$10.3 million and distribution per unit (DPU) is 1.66 cents.

Mr Lim Jit Poh, Ascott Residence Trust Management Limited's (ARTML) Chairman, said: “We have seen differing pace of economic recovery in the markets where we operate. Our geographical diversification which places us across different stages of economic cycles will continue to provide income stability for the Group.”

“We will seek to enhance the yield of the portfolio through active portfolio management strategies that include asset enhancements, yield accretive acquisitions and divestment of properties which have reached an optimal yield, to deliver stable and sustainable returns for our unitholders,” Mr Lim added in a Ascott Reit’s release on Friday.

Mr Chong Kee Hiong, ARTML's Chief Executive Officer, “Ascott Reit’s increase in revenue is mainly led by better performance in Philippines, Singapore and China, with revenue per available unit (RevPAU) growth of 8 percent, 7 percent and 1 percent respectively in 1Q 2010 compared to 1Q 2009. Hospitality demand in these markets is expected to continue to improve in line with the more positive economic conditions, though operating margins may remain low. In Australia, Indonesia, Japan and Vietnam, we expect to see stability in performance for the remaining quarters, driven mainly by occupancy.”

Mr Chong added, “We have accelerated asset enhancement initiatives to enhance the long term returns of selected properties in Singapore, China and Vietnam. In Singapore, we have already seen higher demand and rental rates achieved for the renovated apartments in Somerset Liang Court and Somerset Grand Cairnhill. We will also continue to look for opportunities for yield-accretive acquisitions in existing and new markets to expand the portfolio.”