Ascot REIT sees 14% fall in DPU for 2Q 2017

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Ascott REIT has announced a distribution per unit (DPU) of 1.84 Singapore cents for its 2Q 2017, a decrease of 13.6% from the 2.13 cents achieved in the corresponding period of 2016.

DPU for 2Q 2017 would be 2.10 cents if it is adjusted to exclude the one-off realised foreign exchange gain, and the effects of the rights issue announced in March 2017.

Read: Ascott REIT launches SGD442.7 million rights issue for properties acquisition

The REIT’s DPU for 2Q 2016 would have also been 1.95 cents if it is adjusted to exclude a one-off realised foreign exchange gain from the repayment of foreign currency bank loans, as well as the effects of the equity placement in March 2016 to fund the acquisition of Sheraton Tribeca New York Hotel.

Discounting these factors, Ascott REIT’s DPU would have shown an increase of 8% from 1.95 cents in 2Q 2016 to 2.10 cents in 2Q 2017.

The REIT’s gross revenue for the quarter grew by 4% year-on-year to SGD123.6 million (USD90.3 million) while RevPar increased by 3% to SGD146.

Correspondingly Ascott REIT’s distributable income grew by 34% to SGD46.9 million year-on-year, including a one-off realised foreign exchange gain of SGD11.9 million arising from the repayment of foreign currency bank loans.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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