ART Q3 Distribution Up 84% To $12m

Source : The Business Times, October 25, 2007

ASCOTT Residence Trust (ART), the first pan-Asian serviced residence real estate investment trust (Reit), achieved an 84 per cent year-on-year growth in unitholders’ distribution to $12 million for the third quarter ended Sept 30. The results, which also exceeded its own estimate by 9 per cent, were underpinned by strong operating performance and accretive acquisitions.

This gave a distribution per unit of 1.99 cents for the quarter, which is 39 per cent higher than for the corresponding period last year and 9 per cent better than forecast.

What stood out was that revenues per available unit for its serviced residences in the Philippines and Singapore were 32 per cent and 22 per cent better than forecast in the third quarter.

‘As part of the overall growth strategy, ART will continue to acquire quality serviced residences and rental housing properties to achieve a portfolio value of $2 billion by end-2008,’ said Lim Jit Poh, chairman of Ascott Residence Trust Management Ltd (ARTML), the manager of the trust.

ART has a geographically diversified portfolio of 18 properties in 10 cities across seven countries including Australia, China, Indonesia, Japan, the Philippines, Singapore and Vietnam. Its portfolio value is currently $1.2 billion, comprising of 2,952 serviced residence units.

‘Demand for serviced residences is expected to remain strong and we are confident of delivering the forecast distribution per unit of 7.27 cents for the year,’ ARTML’s chief executive Chong Kee Hiong said.