Ascott Residence Trust posts 1H21 DPS nearly doubled even as gross profit fell 7 percent

The Felix Hotel in Sydney, acquired by Ascott Residence Trust, to be operated under the Citadines Connect brand. Credit: Ascott Residence TrustThe Felix Hotel in Sydney, acquired by Ascott Residence Trust, to be operated under the Citadines Connect brand. Credit: Ascott Residence Trust

Ascott Residence Trust reported Tuesday its distribution per stapled security (DPS) climbed 95 percent on-year to 2.05 Singapore cents from 1.05 Singapore cents in the year-ago period on divestments and termination-fee income. The results missed a forecast from Daiwa.

The trust had S$360 million in net gains from its divestments from 2019 through year-to-date 2021, ART said in a filing to SGX.

Revenue for the January-to-June period declined 11 percent on-year to S$185 million, mainly on the absence of contributions from six properties which were all divested at a premium to book value and lower revenue from the portfolio due to the impact of the Covid-19 pandemic.

The revenue decline was partly offset by the S$3.6 million contribution from acquisitions in Australia, the U.S. and Japan, ART said.

Daiwa had forecast DPS of 2.216 Singapore cents and revenue of S$270.0 million.

Gross profit fell 7 percent on-year to S$82.1 million in the first half, the hospitality trust said.

Beh Siew Kim, CEO of the trust’s managers, was cautiously optimistic about the outlook as vaccination programs globally ramp up and international travel restrictions begin to ease.

“The initial phase of recovery remains largely driven by the domestic and essential corporate travel segments, and the return of international demand may be more gradual,” she said.

“ART’s properties in China continued to lead the recovery with higher corporate demand while properties in Europe benefitted from leisure demand brought on by the summer season. The block bookings at our properties in Australia, Singapore and USA, as well as the long stays in Indonesia, Philippines and Vietnam continued to offer stability,” she added. “ART’s expansion of our rental housing and student accommodation portfolios will generate greater stable returns.”