Ascott Residence Trust Q1 DPU slips 0.24 cents to 1.51 cents (Amended)

ASCOTT Residence Trust's distribution per unit (DPU) fell by 0.24 Singapore cents from a year ago to 1.51 cents for the first quarter of financial year 2017, even as gross revenue and revenue per available unit (RevPAU) rose.

Distribution to unit holders fell by 8 per cent to S$25.1 million. Gross profit fell 3 per cent to S$47.2 million.

Revenue, however, rose 5 per cent to S$111.3 million, the trust said in a filing to the Singapore Exchange on Friday morning before the opening of the market.

RevPAU, which looks at how hotels can fill their available rooms at an average rate, rose by 2 per cent to S$128 per day.

The trust said that its 2016 acquisition of the Sheraton Tribeca New York Hotel was the main reason for higher revenue and RevPAU, but lower DPU.

"Revenue for Q1 2017 increased mainly due to the additional revenue of S$7.6 million from Ascott Reit's acquisition of Sheraton Tribeca New York Hotel in 2016," it said. This was offset by a decrease in revenue of S$1.8 million from the existing properties, mainly in Singapore and the UK as the sterling pound slid against the Singapore dollar.

To fund the acquisition of the Sheraton Tribeca, 94,787,000 new units were issued on the Singapore Exchange on March 23, 2016. It raised S$100 million in gross proceeds.

"DPU for Q1 2017 would be 1.64 cents if it is adjusted to exclude Ascott Reit's equity placement in March 2016 as well as contribution from Sheraton Tribeca New York Hotel," it said.

Ascott Residence Trust's counter was down by 0.5 Singapore cents to S$1.095 at Thursday's close.

Amendment note: An earlier version of this story said that Ascott's RevPAU rose by S$2 to S$128 per day. Ascott has since clarified that this is in fact a 2 per cent rise to S$128 per day, and the article above has been revised to reflect this.