Ascott REIT has reported a distribution per unit (DPU) of 2.16 Singapore cents for its 4Q 2014.Ascott REIT has reported a distribution per unit (DPU) of 2.16 Singapore cents for its 4Q 2014.

Singapore mainboard-listed hospitality REIT Ascott Residence Trust (Ascott REIT) (SGX:A68U) has announced a distribution per unit (DPU) of 2.19 Singapore cents for its 2Q 2014.

After adjusting for the REIT's rights issue in December 2013 and excluding one-off items of approximately SGD4 million, the DPU for the quarter represents an increase of about 5% from the corresponding financial period in 2013.

The REIT has also reported a 14% increase in gross revenue which came in at SGD88.1 million as compared to the SGD77.4 million recorded last year.Gross profit from the REIT's operations correspondingly grew by 14% to come in at SGD46.5 million.

Ascott REIT has attributed the increase in revenue of SGD9.4 million primarily to contributions from the its acquisitions made in the past two years. In a statement issued on 22 July, the REIT highlighted that revenue from its China and Japan properties surged by 60% and 70% respectively due to new acquisitions made in the countries in 2013. Revenue from its Spain and Belgium properties were also up 18% and 17% respectively despite the REIT’s portfolio RevPar/RevPau slipping by about 4%.

However DPU for its 1H 2014, recorded at 3.94 Singapore cents, represents a 16% drop when compared to the same period last year. DPU from the same period in 2013 was 4.7 Singapore cents. After adjusting for the effects of the 2013 rights issue and excluded one-off items, the DPU for 1H 2013 is paired down to 3.76 Singapore cents, translating into a 5% increment for 1H 2014 DPU.

Ascott REIT pays out its DPU semi-annually. Unitholders can expect to receive their DPU payment for the half on 25 August 2014.

Units of Ascott REIT ended the trading day about 1.2% higher on the Singapore Exchange to close at SGD1.28.

Ascott REIT reported a slippage of 4% in the REIT's overall RevPar.
Ascott REIT reported a slippage of 4% in the REIT's overall RevPar for 2Q 2014.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.