Ascott Residence Trust DPS up 43% YoY to 4.23 cents for FY2021

Distribution income in the same period also jumped by 46% YoY to $137.3m.

An increase of 43% year-on-year (YoY) in Ascott Resident Trust’s (ART) distribution per stapled security (DPS) for the financial year (FY) 2021, was reported as part of their latest financial report.

Excluding divestment gains distributed in FY2021 and FY2020, ART’s DPS was up 85% due to improved operating performance and active portfolio management.

Following this increase was a 46% YoY jump in ART’s distribution income, reaching $137.3m. Included in this was a one-off distribution of divestment gain of $45m to share divestment gains with stapled security holders. The move was done to replace income loss from divested assets and mitigate the impact of COVID-19.

Revenue for the second half of 2021 also increased by 30% to $209.4m, with gross profit following with a jump by 49% YoY to $91.2m in the same period. Stable income sources accounted for 70% of its gross profit, whilst management contracts made up the remaining income.

“Through our active portfolio management, we have enhanced ART’s income stability by building its longer-stay assets and further diversifying its portfolio. In the past year, ART invested $780m in 11 yield-accretive rental housing and student accommodation assets at an average EBITDA yield of about 5% to 3%. We have successfully replaced the distribution income from our divested assets at higher yields,” commented Chairman Bob Tan of Ascott Residence Trust Management Limited.

The group’s entrance into the student accommodation segment, in particular, aided the resiliency of the group’s portfolio, with eight student accommodation assets in the US and three rental housing properties in Japan. An occupancy rate of 100% was observed in the US assets, with the Japan assets having an occupancy rate of over 95%.