Artist's impression of Ascott REIT's lyf one-north Singapore. (Image: Ascott REIT)

Ascott Residence Trust (Ascott REIT) has reported an on-year distribution per unit (DPU) growth of 8% for its 2Q 2019, which came in at 1.98 Singapore cents.

The REIT’s distributable income for the quarter similarly increased by 8% to SGD43.1 million.

This includes a realised exchange gain of SGD3.1 million arising from the repayment of foreign currency loans with divestment proceeds of Ascott Raffles Place Singapore.

The REIT’s revenue for 2Q 2019 increased 2% to SGD132.5 million.

Ascott REIT has attributed this mainly to additional revenue from the acquisition of Citadines Connect Sydney Airport in May 2019, and existing properties in the Philippines, UK and Japan.

Gross profit for 2Q 2019 climbed 7% from 2Q 2018 to SGD67.6 million due to higher revenue, and adoption of accounting standard FRS 116 leases with effect from 1 January 2019.

On a same-store basis excluding FRS 116 adjustments, gross profit increased by SGD0.2 million.

The REIT’s RevPAU for the period has increased by 2% on-year.

As at 30 June 2019, Ascott Reit’s gearing was 32.8%, with effective interest costs at 2.1%.

Ascott REIT was last done on the SGX at SGD1.31, which gives a yield of about 6% based on data from the Singapore REITs fundamentals table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.