CapitaLand’s wholly-owned subsidiary, Ascott Residence Trust (Ascott Reit) has announced that Q3 revenue hit S$46.5 million, up 5 percent compared to the same period last year, while unitholders’ distribution and distribution per unit (DPU) in Q3 were S$12 million and 1.85 cents, respectively.
“The Group has seen improvements in demand for serviced residences in 3Q 2010 in most of the markets where it operates. Ascott Reit continued to benefit from its geographical diversification as it provided income stability for the Group through a period when hospitality demand in Asia Pacific is at differing stages of recovery,” said Mr. Lim Jit Poh, chairman of Ascott Residence Trust Management Limited (ARTML).
The company’s revenue per available unit (RevPAU) jumped 7 percent in Q3, mainly due to the 37 percent RevPAU growth in Singapore, said Mr. Chong Kee Hiong, CEO of ARTML. “The better performance in Singapore is mainly due to the successful launch of the refurbished apartment units of Somerset Grand Cairnhill and Somerset Liang Court. RevPAU for Australia, China, Indonesia and The Philippines also increased in 3Q 2010,” he said.
Ascott Reit has completed the acquisitions of 3,347 apartment units in 28 properties in Singapore, Vietnam, UK, France, Spain, Belgium and Germany. With these new acquisitions, the company’s enlarged portfolio now comprises 65 properties with 6,681 apartment units in 23 cities and 12 countries across the Asia Pacific and Europe.
“With the addition of the Europe properties, the Group’s income stability is enhanced through further diversification across geographies, and property and economic cycles. The income stability also arose from the master lease rentals in France and Germany, and minimum guaranteed income in the UK, Belgium and Spain,” said Mr. Lim.
“We will continue to seek yield-accretive acquisitions in Singapore, China, Vietnam and the UK. We will also explore opportunities in new emerging markets.”