Ascott REIT's 3Q DPU hit three-year high

It grew 14% to 2.35 cents.

Ascott Residence Trust’s (Ascott Reit) distribution per unit (DPU) for 3Q 2016 rose 14% year-on-year to 2.35 cents, the highest DPU registered in the past three years.

Unitholders’ distribution grew 21% to S$38.7m, the highest distribution recorded in a quarter since Ascott Reit was launched 10 years ago.

Ascott Reit attributed the record high distribution on realised exchange gain of S$3.3m from the repayment of foreign currency bank loans with the divestment proceeds from Fortune Garden Apartments.

Boosted by Ascott Reit’s acquisitions in 2015 and 2016, revenue increased by 9% to S$123.9m and gross profit by 4% to S$57.5m. Revenue per available unit (RevPAU) also went up 2% to S$144.

Bob Tan, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “Ascott Reit achieved remarkable growth in DPU and distribution income in 3Q 2016. Unitholders’ distribution of S$38.7m is the highest ever in any quarter, driven by the quality assets Ascott Reit acquired in the last two years."

Tan added that Ascott Reit’s entry into the U.S. last August was a significant milestone. The two prime properties in New York have a high average occupancy of over 90% and they are the biggest contributors to their strong performance.