Ascott Residence Trust reports 24% drop in DPU for Q1

Mainboard-listed Ascott Residence Trust on Wednesday reported that its distribution per unit (DPU) in the first quarter fell 24 per cent on-year.

For the three months ended March, Ascott Reit achieved a DPU of 1.77 cents, lower than the 2.33 cents over the same period last year.

Gross profit stood at S$19.9 million, 16 per cent lower than the year-ago profit of S$23.3 million.

Ascott Reit said the fall was due to the global economic slowdown, which has impacted the hospitality industry and resulted in lower demand for accommodation.

The subsidiary of CapitaLand said it expects its operating performance to be weaker this year, though it will stay profitable.

It added that it has already initiated discussions with banks to secure some S$96 million of refinancing due this year, ahead of their maturity.

Source : Channel NewsAsia – 22 Apr 2009

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