Ascott Residence Trust Q1 RevPAU up 22% on higher average daily rates, occupancy
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HOSPITALITY trust Ascott Residence Trust (ART) said its portfolio revenue per available unit (RevPAU) rose 22 per cent on year to S$67 for its first quarter ended March, from S$55 a year ago.
In a business update on Friday (Apr 29), the manager of the real estate investment trust (Reit) said this was driven by an increase in average daily rates and occupancy.
Despite muted travel demand in January and February due to Covid-19 restrictions, pent-up demand had translated to a strong pick-up in March, leading to an uptick in international corporate and leisure bookings as more countries reopened their borders, the manager said.
In the quarter, the Reit also saw higher contributions from its stable income, which includes master leases and longer-stay properties such as rental housing and student accommodation, driven by accretive acquisitions.
Its average occupancy for its rental housing remained above 95 per cent for the quarter, while its student accommodations were fully occupied, with an expected rent growth of around 5 per cent on year.
The manager said the Reit had a weighted average lease expiry of around 7 years, and negotiations were underway for one of its master leases at Ascott Orchard Singapore that will expire in 2022.
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Breaking it down by markets, the manager noted that its long-stay offers have provided resilience for its China operations amid lockdowns. Meanwhile, recovery is ramping up in its other markets, such as Australia, Japan and Singapore, as restrictions ease.
Looking ahead, ART expects it can benefit from the improving outlook for travel as Covid-19 restrictions ease.
The manager said its serviced residences and hotels in gateway cities and large domestic markets are likely well-positioned to ride the recovery, while its rental housing and student accommodation properties should offer downside protection against a resurgence in the virus.
Units of ART closed up S$0.01 or 0.9 per cent at S$1.15.
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