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

Ascott REIT has reported a DPU of 1.51 Singapore cents for its 1Q 2017, a fall of 14% from the 1.57 cents achieved in the corresponding period of 2016.

However, when adjusted to account for one-off net realised exchange gain of SGD3 million (USD2.1 million) and issue of 94.7 million new units as equity placement in March 2016, the DPU would have shown an increase of 4% instead.

Gross revenue for the period increased by 5% year-on-year to SGD111 million, although gross profit slid by 3% to SGD47.2 million.

RevPAR for 1Q 2017 increased by 2% to SGD128 from SGD125 previously.

Ascott REIT conducted the equity placement exercise in 2016 to partly raise funds for the acquisition of Citadines City Centre Frankfurt, Citadines Michel Hamburg, and Ascott Orchard Singapore.

“When the acquisitions of the German and Singapore properties are completed, they will increase Ascott REIT’s asset size to SGD5.3 billion, reinforcing its position as the largest hospitality REIT in Singapore”, said Bob Tan, Chairman of the REIT’s manager.

“We continue to actively seek accretive acquisitions in gateway cities in markets such as Australia, Japan, Europe and the US”, he added.

Units of Ascott REIT last changed hands on the Singapore Exchange at SGD1.09.

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.