Ascott Reit DPU slides 15%

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Costs incurred for one-off events in the fourth quarter pulled down Ascott Residence Trust’s distribution per unit (DPU) by 15 percent over a year ago, down eight percent from the trust manager's forecast.

This year, “we expect operating performance of our properties to improve over 2011 based on source currency”, said Chong Kee Hiong, CEO at Ascott Residence Trust Management Ltd. However, this will be offset by the estimated increase in interest expense (50 basis point).

The movements between the Singapore dollar and three other currencies (the Vietnamese dong, the euro and the pound) will be critical to the trust's bottom line, as these currencies make up 60 percent of the trust’s annual gross profit.

On possible acquisitions, Chong said “deals are more likely in the second half”, considering the wait-and-see attitude sellers and buyers may adopt in the first half due to the uncertainties in the economy.

The trust’s DPU for the three months ended 31 December 2011 slid to 1.83 cents or by 15 percent year-on-year, which is also notably eight percent lower than the 1.99 cents forecast by ARTML on 13 September 2010.

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