28.6 C
Asia
Friday, February 3, 2023
HomeSecurityAscott Residence Trust increases distribution per stapled security

Ascott Residence Trust increases distribution per stapled security

REVPAU surged 61% in the second half of 2021, further improving income stability with the expansion of ART’s long-stay assets.

Singapore- Ascot Residence Trust (ART) Increased the distribution per Stapled Security (DPS) in 2021 by 43% compared to 2020 to 4.32 cents. ART distribution revenue also increased by 46% compared to 2020 to S $ 137.3 million. One is included in the distribution income for 2021. We will turn off the distribution of S $ 45 million in gains on sale to share gains on sale with Staple Securities holders, compensate for loss of income from the assets sold and mitigate the impact of COVID-19. Excluding gains on sales distributed in 2021 and 2020, ART’s DPS increased 85% year-over-year due to ART’s aggressive portfolio management to improve performance and improve revenue stability.

ART’s revenue per available unit (REVPAU) continued to rise, rising for the sixth straight quarter from the second quarter of 2020. As the pace of resumption recovered, REVPAU in the fourth quarter of 2021 recorded the strongest increase of S $ 87, up 24% quarter-on-quarter. .. ART’s REVPAU rose 61% to S $ 79 in the second half of 2021 compared to the second half of 2020. Long-stay properties continued to provide stable income, and increased travel restrictions and increased global economic activity led to increased demand from both corporate and leisure guests. .. The major ART markets, the United States (USA), the United Kingdom and Australia, recorded the strongest growth.

Mr Bob Tan,President Ascot Residence Trust Management Limited (ARTML) When Ascott Business Trust Management Pte.Ltd (ART Manager) said:Through aggressive portfolio management, we have built long-stay assets and further diversified our portfolio to improve the stability of ART’s earnings. Last year, ART invested S $ 780 million in 11 yield-increasing rental housing and student accommodation assets, with an average EBITDA yield of around 5%. We have succeeded in replacing the distribution income from the sold assets with a higher yield. In 2020 and 2021, ART sold six assets with an average exit yield of approximately 2% and received revenue of approximately S $ 580 million. Currently, our long-stay assets account for approximately 16% of the value of our entire portfolio. We will raise the asset allocation target for these long-stay assets from 15-20% to 25-30% in the medium term to further strengthen the resilience of our ART portfolio. We continue to strive to provide sustainable long-term value to stapled securities holders.

MS Beh Siew Kim, ARTML and Ascott Business Trust Management Pte Chief Executive Officer. Ltd. (ART Manager) said:In 2021, ART was also recognized for its sustainability and corporate governance efforts and was the first to win reputable indicators and awards worldwide and in the region.We continue to be committed to sustainability and seek more yield-increasing investments while taking a disciplined approach to capital and cost management... “

“”Economic growth is expected to be modest in the short term, given the limitations of mobility in the light of the Omicron variant and the tightening of monetary policy to curb inflationary pressures. The presence of ART in the large domestic markets will allow us to continue to capture strong local demand for the foreseeable future. Travel is recovering in many markets, including Europe and the Americas, as immunization rates rise. The government’s commitment to the coordinated lifting of travel restrictions and the reopening of borders could further help restore confidence in travel and accelerate the recovery in 2022.“Beh added.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments