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-listed hospitality REIT Ascott Residence Trust (Ascott REIT) (SGX: A68U) announced on 18 August that it has completed the acquisition of a property in Malaysia and two properties in China simultaneously.

The acquisition, which went ahead after receiving the blessings of unit holders at an extraordinary general meeting (EGM) held on 31 July, represents Ascott REIT’s first forray into Malaysia and brings the total number of properties in its portfolio to 85 in 33 cities across 13 countries.

The properties acquired are namely the 207-unit Somerset Ampang Kuala Lumpur for MYR175 million (SGD67.4 million), the 249-unit Citadines Zhuankou Wuhan and the 251-unit Citadines Gaoxin Xi’an for RMB252 million (SGD51.4 million) and RMB270 million (SGD55.1 million) respectively.

REITsWeek reported on 8 July that the REIT expects the acquisition to increase FY 2013 distribution per unit by 1.2% from 8.71 Singapore cents to 8.81 Singapore cents on a pro forma basis.

Units of Ascott REIT closed the trading day at SGD1.23 on the Singapore Exchange, falling about 4% from a high of SGD1.28 when the REIT announced a 16% drop in distribution per unit (DPU) for its 1H 2014 on 22 July.

Ascott REIT recorded a 16% drop in DPU for its 1H2014.
Ascott REIT recorded a 16% drop in DPU for its 1H2014.

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.