Ascott REIT's profits up 1% to $65.05m in Q3

This was due to lower revenue from the sale of Ascott Raffles Place Singapore.

Ascott Residence Trust’s (Ascott REIT) gross profits inched up 1% YoY to $65.05m in Q3 compared to $64.15m in Q3 2018, an announcement revealed. Revenue dipped 2% YoY to $132.45m from $134.48m over the same period last year.

Also read: Ascott REIT's net profit up 7% to $63.1m in Q2

The slight rise was attributed to the adoption of FRS 116 Leases with effect from 1 January 2019, partially offset by lower revenue due to the divestment of Ascott Raffles Place Singapore in May.

Unit holders’ distribution climbed 6% YoY to $41.6m in Q3 from $39.4m in Q3 2018, which included a one-off partial distribution of a $4m gain from the divestment of Ascott Raffles Place Singapore. Distribution per unit (DPU) also rose 5% YoY to $0.0191 during the quarter from $0.0182 last year.

Gross profits from the REIT’s Belgium and Spain portfolios rose by 29% and 13%, respectively, due to stronger leisure demand. Gross profit for Vietnam also climbed 7% because of higher demand from corporate travellers; whilst the United Kingdom’s gross profits increased 5% amidst higher corporate and leisure demand.

Revenue decreased in Japan (-4%), Malaysia (-1%), Philippines (-2%) and China (-4%) due to lower rental rates and soft demand.

On 21 October, Ascott REIT unitholders approved the proposed combination with Ascendas Hospitality Trust (A-HTRUST), which would make it the largest hospitality trust in Asia Pacific, according to Bob Tan, chairman of Ascott Residence Trust Management Limited (ARTML).