DBS has warned that Ascott Residence Trust (ART) will face flat growth in Singapore, and cited countries like the Philippines, Malaysia and Australia as destinations that will see continued growth.
The trust’s gross profit and revenue grew two and three percent to S$40.0 million and S$75.2 million respectively. This was mainly attributed to contributions from 28 serviced residences it acquired in October 2010.
“On a same store basis, topline and gross profit would have stayed relatively flattish,” DBS noted.
The S$20.6 million distributable income or distibution per unit (DPU) of 1.83 Scts for Q4 2011 was hit by one-off expenses that include S$2.1 million for licensing related matters in China and loan transaction fees.
ART posted S$47.4 million for its net revaluation gain that translates to a net asset value of S$1.36/unit.
“A generally cautious mood is prevailing among corporate clients and management will be taking a more active role towards managing portfolio performance,” noted DBS.
However, the Philippines, Indonesia and Australia (which shared 13 percent of 2012 gross profit) will likely exhibit continuous growth backed by strong demand from the oil and gas industries.
London properties, which contributed 14 percent of gross profit, will also deliver strong performance in line with the London Olympics taking place in the middle of this year.
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