Ascott REIT revenues grew by an amazing 65% to $73.1m in Q2 2011

And distribution per unit was 25% higher at 2.33 cents.

According to a release, Ascott Residence Trust achieved a unitholders’ distribution of S$26.3 million for the period 1 April to 30 June 2011, 127% higher than the same period last year.

The increase in revenue was mainly due to the contribution of S$33.1 million from the yield accretive acquisition of 28 properties on 1 October 2010. Correspondingly, gross profit was up 98% at S$41.2 million.Gross profit margin has increased from 47% in 2Q 2010 to 56% in 2Q 2011 due to high margins for properties on master leases, and better margins achieved by properties on management contracts as a result of higher rental rates and better cost management.

Independent valuations of the Group’s portfolio were carried out as at 30 June 2011. The portfolio was revalued at S$2.63 billion, resulting in a revaluation surplus of S$82.8 million. Ascott Reit’s net asset value per unit as at 30 June 2011 was S$1.33, an increase of 4% from 31 December 2010.

Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s Chairman, said: “Ascott Reit has delivered a robust set of results in 2Q 2011. The yield accretive acquisition of the 28 Asia and Europe properties last year has boosted performance. Ascott Reit’s second quarter DPU of 2.33 cents is 25% higher than the same period last year and 16% higher than forecast. We will continue to seek opportunities to expand the portfolio through yield accretive acquisitions.”

Mr Chong Kee Hiong, ARTML’s Chief Executive Officer, said, “Ascott Reit’s portfolio achieved a revenue per available unit of S$147 in 2Q 2011, a 17% increase over the same period last year and 7% higher than forecast. This was mainly attributable to the better performance from the Singapore, Indonesia and Australia properties which achieved double digit RevPAU increases. The strong performance from the newly acquired United Kingdom properties also contributed to the better RevPAU performance.”

“Following the March 2011 earthquake in Japan, Ascott Reit’s 18 rental housing properties, where tenants are mainly local Japanese, have continued to perform well. In addition, occupancy in the two serviced residence properties which cater mainly to an expatriate clientele has picked up in tandem with the improving business conditions in Japan.”

Mr Chong added, “We expect to continue to enjoy RevPAU growth led by Singapore and the UK. We will continue to optimise the yield and value of Ascott Reit’s portfolio through active asset management and asset enhancements. We expect to deliver the forecast distribution of 7.74 cents as disclosed in the Offer Information Statement dated 13 September 2010.”