Singapore-listed hospitality REIT, Ascott Residence Trust (Ascott REIT) (SGX:A68U), announced on 26 January that it has achieved a distribution per unit (DPU) of 2.07 Singapore cents for its 4Q 2015, a dip of 4% as compared to the 2.16 cents paid in 4Q 2014.

However the DPU for 4Q 2014 included one-off items of approximately SGD6.1 million said the REIT. Excluding the one-off items, DPU for 4Q 2014 would have been 1.76 cents. As such, DPU for 4Q 2015 would have been an increase of 18%.

Revenue for the quarter rose 26% to SGD119.2 million compared to 4Q 2014. The REIT has attributed this mainly due to the additional revenue from its acquisitions in 2015, including a maiden property in New York.

“Revenue for 4Q 2015 increased mainly due to the additional revenue of SGD24.0 million from Ascott REIT’s acquisitions in 2015 and 2014, as well as SGD1.0 million from the existing properties”, said the REIT in its statement.

However the increase was partially offset by the decrease in revenue of SGD0.8 million from the divestment of six rental housing properties in Japan in 3Q 2015, said the REIT.

Ascott REIT has warned that the pace of global economic recovery is likely to remain slow in the quarters ahead due to uncertainty in emerging markets. “Notwithstanding the anaemic outlook, we expect demand for the serviced residences to remain healthy, especially in the key markets of Ascott REIT’s balanced portfolio”, it added.

“With the extended-stay business model coupled with the stability of income through its master leases and serviced residence management contracts with minimum guaranteed income, we are confident that Ascott REIT is well-positioned to provide stable income and returns to its unitholders”, said the REIT.

Units of Ascott REIT last changed hands on the Singapore Exchange at SGD1.11.