Ascott Residence Trust’s Q4 distribution up 12%

ASCOTT Residence Trust (ART) yesterday said that unitholders’ distribution for the fourth quarter ended Dec 31, 2009, rose 12 per cent to $11.5 million, from $10.3 million a year ago.

The rise was despite a 2 per cent dip in revenue for the three months to $46.1 million mainly due to weaker demand for serviced residences in Singapore. Revenue in Q4 2008 was boosted by the higher rental rates contracted in the earlier months of 2008 before the onset of the global financial crisis, ART said.

But the trust’s gross profit rose 7 per cent to $21.9 million as its direct expenses fell year-on-year. Distribution per unit (DPU) for Q4 2009 rose to 1.87 cents from 1.69 cents for Q4 2008.

ART achieved a RevPAU (revenue per available unit) of $124 in Q4 2009 – a decrease of 7 per cent as compared to 4Q 2008. This came about from a reduction in the average daily rates of its serviced residences, the trust said.

The trust is upbeat about its prospects in 2010 and remains confident of the longer term growth in the markets where it operates.

‘We have seen a continued stability in hospitality demand extending from Q3 2009 into Q4,’ said Lim Jit Poh, chairman of the trust’s manager. ‘We expect improvement in hospitality demand in 2010 in line with the more positive economic sentiments though the extent of the economic recovery is uncertain.’

For the whole of 2009, ART’s distribution to unitholders fell 16 per cent to $45.2 million from $53.7 million in 2008. DPU fell 17 per cent to 7.32 cents from 8.78 cents.

Chief executive Chong Kee Hiong said ART has accelerated asset enhancement plans for selected properties including Somerset Grand Cairnhill and Somerset Liang Court in Singapore and Somerset Grand Hanoi in Vietnam to improve asset yields. ‘We will also seek accretive acquisition opportunities to expand Ascott Reit’s portfolio,’ he added.

ART’s portfolio comprises 38 properties with 3,644 units in seven countries. The stock lost 5 cents to end at $1.28 yesterday.

Source : Business Times – 22 Jan 2010