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PR Newswire
23-01-2015, 04:37 PM
The plunge in oil prices has created a "challenging operating environment going into 2015", according to Ascott Residence Trust yesterday.
The serviced apartment operator reported that its properties in locations hit by the sharp fall in the price of crude recorded lower revenue in the fourth quarter of last year.
Turnover was weaker at its two outlets in Indonesia - Ascott Jakarta and Somerset Grand Citra Jakarta - as 25 per cent of their clientele are from the oil and gas sector.
Fourth-quarter revenue from these properties fell 6 per cent to US$2.9 million (S$3.9 million) compared with the same quarter a year earlier, although it was up 1 per cent for the 12 months to US$12.5 million.
It could become a similar story at the newly acquired property in Malaysia, Somerset Ampang Kuala Lumpur, where about 30 per cent of the customers are from the energy, oil and gas sector.
While the oil shock hit Ascott's turnover late last year, it was still not enough to offset the impact of the trust's new acquisitions, said its manager, Ascott Residence Trust Management (ARTM).
ARTM chairman Lim Jit Poh said in a statement: "Ascott Reit made remarkable achievements in 2014, ending the year with a strong quarter. We acquired nine quality assets with over 1,800 units across seven cities for a total of $559.1 million."
Gross revenue rose 13 per cent in the fourth quarter to $95 million and rose by the same amount in the full year to $357.2 million.
Full-year distribution rose by 9 per cent to $125.6 million, thanks in part to these acquisitions.
Distribution per unit (DPU) for the three months to Dec 31 was 1.76 cents, up 13 per cent from 1.56 cents the previous year after adjustment for the effects of a rights issue and excluding one-off items.
DPU for the full year, again adjusted, was 7.61 cents, 6 per cent ahead of the 7.19 cents a year earlier.
The Reit manager added that it would take steps to diversify its client base in Indonesia and Malaysia, and that its outlook for this year remained "cautiously optimistic".
Ascott Reit units closed 1.5 cents up at $1.285 yesterday.
mleeyy@sph.com.sg
The serviced apartment operator reported that its properties in locations hit by the sharp fall in the price of crude recorded lower revenue in the fourth quarter of last year.
Turnover was weaker at its two outlets in Indonesia - Ascott Jakarta and Somerset Grand Citra Jakarta - as 25 per cent of their clientele are from the oil and gas sector.
Fourth-quarter revenue from these properties fell 6 per cent to US$2.9 million (S$3.9 million) compared with the same quarter a year earlier, although it was up 1 per cent for the 12 months to US$12.5 million.
It could become a similar story at the newly acquired property in Malaysia, Somerset Ampang Kuala Lumpur, where about 30 per cent of the customers are from the energy, oil and gas sector.
While the oil shock hit Ascott's turnover late last year, it was still not enough to offset the impact of the trust's new acquisitions, said its manager, Ascott Residence Trust Management (ARTM).
ARTM chairman Lim Jit Poh said in a statement: "Ascott Reit made remarkable achievements in 2014, ending the year with a strong quarter. We acquired nine quality assets with over 1,800 units across seven cities for a total of $559.1 million."
Gross revenue rose 13 per cent in the fourth quarter to $95 million and rose by the same amount in the full year to $357.2 million.
Full-year distribution rose by 9 per cent to $125.6 million, thanks in part to these acquisitions.
Distribution per unit (DPU) for the three months to Dec 31 was 1.76 cents, up 13 per cent from 1.56 cents the previous year after adjustment for the effects of a rights issue and excluding one-off items.
DPU for the full year, again adjusted, was 7.61 cents, 6 per cent ahead of the 7.19 cents a year earlier.
The Reit manager added that it would take steps to diversify its client base in Indonesia and Malaysia, and that its outlook for this year remained "cautiously optimistic".
Ascott Reit units closed 1.5 cents up at $1.285 yesterday.
mleeyy@sph.com.sg