Ascott REIT's gross profit surged 10% to $44.8m

Strong contributions from new assets.

According to a release, Ascott Residence Trust’s (Ascott Reit) Unitholders’ distribution surged 17% to S$30 million for 3Q 2013 compared with the same period last year. Distribution per unit (DPU) for 3Q 2013 grew 6% to 2.37 cents.

Revenue increased 11% quarter-on-quarter to S$86.1 million in 3Q 2013. This was primarily due to contributions from 17 new properties acquired in the second half of 2012 and June 2013.

The new properties are located in China, Germany, Japan and Singapore. In line with the increase in revenue, gross profit grew 10% to S$44.8 million in 3Q 2013.

Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “Ascott Reit hasdelivered another quarter of strong Unitholders’ returns mainly because of our strategic acquisitions of quality assets mainly from our sponsor, The Ascott Limited.

For three consecutive quarters in 2013, we achieved double-digit increase in Unitholders’ distribution. In October, Ascott Reit has commenced the strata sale of 81 apartment units in Somerset Grand Fortune Garden Beijing. The divestment will enable Ascott Reit to unlock value and reinvest the sale proceeds in higher yielding assets."

Mr Lim added: “Ascott Reit will continue to enjoy stable income due to our extended stay business model and geographical diversification. To strengthen Ascott Reit’s portfolio, we will continue to actively seek acquisitions in key gateway cities in China, Japan, Malaysia, Australia as well as London, Paris and key cities in Germany.”

Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “For 3Q 2013, Unitholders’ distribution surged 17% and we achieved strong revenue growth of 11%. Revenue for China and Germany rose 130% and 220% respectively.

This was largely due to contributions from our newly acquired Ascott Guangzhou, Citadines Biyun Shanghai, Citadines Xinghai Suzhou, Somerset Heping Shenyang and Madison Hamburg. Revenue for Japan was up by 36% because of the rental housing properties we acquired in June 2013, and higher demand from corporate and leisure travellers.”