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Ascott Reit's Q4 DPU dips 7% (Amended)

Tuesday, January 24, 2017 - 08:36

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Ascott Residence Trust announced on Tuesday that its distribution per unit (DPU) for the fourth quarter ended Dec 31, 2016, was 1.93 Singapore cents, down 7 per cent from 2.07 cents a year ago, after adjustment for a one-off item.

Ascott Residence Trust announced on Tuesday that its distribution per unit (DPU) for the fourth quarter ended Dec 31, 2016, was 1.93 Singapore cents, down 7 per cent from 2.07 cents a year ago, after adjustment for a one-off item.

If unadjusted, DPU for Q4 was 2.04 Singapore cents, still a one per cent decline year-on-year.

Unitholders' distribution grew 6 per cent to S$33.9 million, up from S$32.06 million the year before. This came on the back of a net realised exchange gain of S$2 million arising from the repayment of foreign currency bank loans with the divestment proceeds from Fortune Garden Apartments and the repayment of shareholders' loan from the group's subsidiaries.

Revenue went up 6 per cent to S$126.75 million, while gross profit went up 3 per cent to S$58.2 million.

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The increase in revenue was mainly contributed by the additional revenue of S$11.9 million from Ascott Reit's acquisition of Sheraton Tribeca New York Hotel in 2016, partially offset by the decrease in revenue of S$4.4 million from the existing properties, mainly in China and the UK (due to depreciation of the pound against the Singapore dollar).

Its revenue per unit grew 2 per cent, thanks to the higher average daily rate from Sheraton Tribeca New York Hotel as compared to the existing properties.

For the full year, DPU rose 4 per cent to 8.31 cent, after adjustment of equity placement, while revenue went up 13 per cent to S$475.6 million, and gross profit climbed 9 per cent to S$222.2 million, mainly contributed by Ascott Reit's acquisitions in 2015 and 2016.

Bob Tan, Ascott Residence Trust Management Limited's chairman, said: "We are actively seeking accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US. We will also look at divesting properties with limited growth potential and re-deploying the proceeds in higher yielding assets."

Amendment: Ascott Residence Trust's Q4 DPU fell 7 per cent from 2.07 cents a year ago, not 2.7 cents as previously reported. Gross profits for its full year DPU climbed 9 per cent to S$222.2 million, not two per cent.

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