Ascott Residence Trust (Ascott Reit) has posted a slim rise in its distribution per unit (DPU) for the second quarter of 2010.
Ascott Reit DPU rose 4 percent to 1.87 cents in Q2 from 1.79 cents over the same period last year, while Q2 distribution to unitholders increased 5 percent to $11.6 million from last year’s $11 million. The company’s revenue also jumped 3 percent on-year from $43 million in Q2 2009 to $44.4 million in Q2 this year.
Mr. Chong Kee Hiong, chief executive of Ascott Residence Trust Management Ltd (ARTML), said the increase in revenue was due to the company’s strong performance in Singapore and China.
“The level of business activity in Singapore has increased in line with the strong economic growth, resulting in higher demand for serviced residences,” he said.
Mr. Chong also pointed out that the better performance in Singapore was driven by higher rental rates, while properties in Beijing and Shanghai were also enjoying higher rental rates and occupancies, which were mainly attributed to the increase in demand during the 2010 World Expo in Shanghai.
The Singapore revenue would have been slightly higher if not for the renovation of the company’s two Singapore properties, said Mr. Chong. However, the two properties were re-launched recently.
Ascott Reit has also begun renovation works for selected properties in China and Vietnam. “These asset enhancement initiatives will increase the returns of our portfolio in the long term,” said Mr. Chong.