Ascott Residence Trust's second-quarter results have received a lift from contributions from new properties in its portfolio.
Distribution per unit (DPU) for the three months to June 30 was up 5 per cent to 2.19 cents, after adjusting for the impact of a rights issue in December, said Ascott Residence Trust Management, the manager of the hospitality trust, yesterday.
Revenue for the quarter ended June 30 came in 14 per cent higher at $88.1 million from the same period a year earlier.
That was on the back of an extra $9.4 million from its new acquisitions such as Somerset Heping Shenyang, Citadines Biyun Shanghai and the Infini Garden rental housing property in Fukuoka.
The trust now has 83 properties totalling 9,278 units in the Asia Pacific and Europe.
Refurbishment works at its Ascott Raffles Place Singapore were completed in the second quarter, which led to higher contributions from rents, said Mr Ronald Tay, chief executive of the manager.
However, sale of strata units at its Somerset Grand Fortune Garden in Beijing hit the topline by $1.1 million after operations stopped at the property, said the manager.
Overall, revenue from China rose 60 per cent in the same period, while turnover from Japan soared 70 per cent. Distributable income for the quarter was also up 8 per cent to $33.5 million from a year earlier, as a result.
This year, the firm also inked agreements to acquire its first serviced apartment properties in Kuala Lumpur, Xi'an and Wuhan, which are expected to broaden its stream of earnings and increase its assets to $4 billion, said Mr Lim Jit Poh, chairman of the manager.
Earnings per unit for the three-month period ended June 30 was 3.43 cents, up from 3.39 cents a year ago. Net asset value per unit as at June 30 came in at $1.38, up from $1.37 as at Dec 31.
DPU for the first half of the year was up 5 per cent to 3.94 cents from a year ago, after adjusting for the rights issue. This will be paid to unitholders on August 25. Distributable income was 3 per cent higher at $60.2 million.
Meanwhile, the firm has started upgrading works at its Somerset Ho Chi Minh City property. "We will continue to grow Ascott Reit's portfolio through accretive acquisitions in China, Japan, Malaysia, Australia and Europe," said Mr Lim.
Ascott Reit's units closed half a cent higher at $1.265 yesterday.
This article was first published on july 22, 2014.
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