Ascott REIT profit up from Acquisition Gain
Nov 1st, 2015
Singapore's Ascott Residence Trust’s (Ascott Reit) reported first three quarters’ total revenue rose 21 percent over same time period of the previous year to reach SGD 113.2 million. The REIT attributed this to its acquisition gains in 2014 and 2015, as well as stronger year on year operating performance from existing properties. Revenue per available unit (RevPAU) for the three quarters grew 10 percent to SGD 141 compared to the same period in 2014. Gross profit increased 13 percent to SGD 55.2 million.
Ascott Reit’s asset size quadrupled since it was listed on the Singapore Exchange (SGX) in March 2006 to reach SGD 4.7 billion. The trust's portfolio comprises 90 properties with 11,392 units in 38 cities across 14 countries in the Americas, Asia Pacific and Europe. Ascott Reit’sserviced residences are mostly operated under the Ascott, Citadines and Somerset brands, mainly located in key gateway cities across regions. Ascott Reit is managed by Ascott Residence Trust Management, subsidiary of the Ascott Limited, wholly owned by South East Asia's biggest developer CapitaLand.
Also this week the Ascott Limited, inked four new management contracts today for 583 serviced residence units in China. Ascott says the addition of the new properties will further reinforce its position as the largest international serviced residence owner-operator in China with over 14,300 units in 80 properties across 24 cities.
Kevin Goh, Ascott’s managing director of North Asia, said “to drive Ascott’s growth in China, we are accelerating our expansion across the tier-1 and 2 cities while increasing our business development in the growth cities of the central and west China. We will expand through investments, management contracts, strategic alliances and franchises.” adding the company is on track and confident of achieving Ascott’s target of 20,000 units by 2020. Two of the newly acquired properties are located in Shanghai and one each in Beijing and Dalian. Ascott entered China market about 15 years ago, it operates service apartments under three serie brands.