Ascott REIT's property in Singapore, Ascott Raffles Place. (Photo: REITsWeek)Ascott REIT's property in Singapore, Ascott Raffles Place. (Photo: REITsWeek)

Singapore-listed hospitality REIT Ascott Residence Trust (Ascott REIT) has achieved a DPU of 2.04 Singapore cents for its 4Q 2016, a dip of 1% compared to the 2.07 cents recorded for the corresponding period of 2015.

Adjusting for the one-off unitholders’ distribution of SGD1.5 million (USD1.06 million) in 2015, the DPU would have been a year-on-year drop of 7% to 1.93 cents.

Gross revenue for the quarter increased by 6% to SGD126.7 million while net property income (NPI) grew by 3% to SGD58.2 million.

Correspondingly distributable income rose by 6% to SGD33.9 million.

On a yearly basis, Ascott REIT’s distributable income for FY 2016 grew 9% to a record high of SGD135 million, while DPU rose 4% to 8.27 cents.

This came on the back of an increase in revenue for FY 2016, which grew by 13% to SGD475.6 million, while NPI increased by 9% to SGD222.2 million, mainly contributed by Ascott REIT’s acquisitions in 2015 and 2016.

Revenue per available unit (RevPAU) for the year climbed 5% to SGD140.

“The strong performance was due to our acquisitions of quality assets over the last two years, and our active capital and asset management”, said Bob Tan, Chairman of Ascott REIT’s manager.

For the period, Ascott REIT lowered its gearing from 41% in the previous quarter to 39.8% in 4Q 2016, with 82% of total borrowings on fixed interest rates.

For the quarters ahead, Ascott REIT has indicated an intention to continue enhancing its portfolio.

“We are actively seeking accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US”, said Tan.

“We will also look at divesting properties with limited growth potential and re-deploying the proceeds in higher yielding assets”, he added.

Units of Ascott REIT are currently listed on the Singapore Exchange at SGD1.17.

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.