Ascott Residence Trust to up distribution per unit to 1.87 cents in Q2

Mainboard-listed Ascott Residence Trust has reported a slight increase in its distribution per unit in the second quarter.

Its Q2 DPU came in at 1.87 cents, four per cent higher than the 1.79 cents DPU announced in the year-ago period.

Distributable income rose five per cent on-year to S$11.5 million, while revenue was up three per cent on-year to S$44.4 million.

Ascott attributes the increased revenue to higher contribution from its serviced residences in Singapore and China.

But that was partially offset by a decrease in revenue from its business in Vietnam.

In particular, China showed strong performance, especially in Beijing and Shanghai.

Ascott also says it saw an improvement in the occupancy of its serviced residences from 73 per cent in the second quarter last year to 81 per cent in the second quarter this year.

Going forward, Ascott remains confident of the long term growth in the markets in which it operates.

It notes that its geographical diversification will continue to provide income stability even though the global pace of recovery may differ.

Ascott adds that it has relaunched two Singapore properties, Somerset Grand Cairnhill and Somerset Liang Court.

It expects the two to benefit from the strong demand, with the renovated apartments enjoying premium rates.

As of June, its total portfolio valuation stood at S$1.56 billion, a two per cent increase since its last assessment conducted in December.

Source : Channel NewsAsia – 23 Jul 2010

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