Ascott Residence Trust (Ascott REIT)

[kayhian]

SINGAPORE: Ascott Residence Trust's (Ascott REIT) distribution per unit rose 5 percent to 2.25 cents in Q1 2013 from a year earlier.

Its unitholder's distribution grew 14 percent to S$27.6 million in the same period.

However, the trust's revenue fell 3 percent to S$69.2 million while its gross profit dropped 9 percent to S$33.8 million.

In a media statement, Ascott REIT said its revenue was lower due mainly to the divestment of Somerset Grand Cairnhill Singapore and Somerset Gordon Heights Melbourne in 2012.

It added that contribution from its existing properties in Singapore and Japan was lower too.

Meanwhile, revenue and gross profit for China, Japan and Germany were higher in Q1 2013 compared to a year ago.

This was largely due to contributions from its newly-acquired properties.

Revenue in China jumped 36 percent from the newly-acquired Ascott Guangzhou, while revenue in Japan increased 28 percent due to contribution from serviced apartments Citadines Karasuma-Gojo Kyoto and improved market sentiments.

In Germany, revenue rose 140 percent mainly due to the contribution from the newly-acquired hotel Madison Hamburg.

Ascott Residence Trust Management's Chief Executive Officer, Ronald Tay, said: "In Q1 2013, we opened Citadines Suites Louvre Paris after the property was transformed into a boutique-style luxury serviced residence. We also completed the renovation of Citadines Croisette Cannes and Citadines City Centre Lille and started to refurbish Citadines Toison d'Or Brussels and Somerset Xu Hui Shanghai this quarter. The ongoing renovation of Ascott Jakarta and Citadines Ramblas Barcelona is slated for completion in Q4 2013. We will continue to progressively execute our asset enhancement programmes in order to grow our revenue per available unit."

[kayhian]

Ascott Buys Assets In China & Japan Totalling $287.4m

Ascott Residence Trust entered into conditional agreements to buy three primed serviced residences in China and a portfolio of 11 rental housing properties in Japan for a total of $287.4 million. Ascott will buy Citadines Biyun Shanghai and Somerset Heping Shenyang for Rmb321 million (approximately $63.2 million) and Rmb438 million (approximately $86.2 million) respectively from Ascott Serviced Residence (China) Fund, in which The Ascott Limited holds a 36.1 percent stake. It will also buy Citadines Xinghai Suzhou from The Ascott for Rmb118 million (about $23.2 million). In Japan, it will buy 11 rental housing properties in Japan for 9.2 billion yen (about $114.8 million) from ACRJ3, an 88.9 percent owned subsidiary of Ascott. The new additions will add 1,576 apartment units to Ascott’s current 7,060 apartment units. Ascott’s asset size will also increase by 11 percent from $2.8 billion to $3.1 billion.

Significance: Ascott said the acquisitions are expected to increase FY12 distribution per unit by 2.9 percent from 8.76 cents to 9.01 cents. The acquisition of quality assets in China and Japan will also increase its Asia portfolio, where it remains a hotspot for the trust to grow, from 59 percent to 63 percent of its total asset value.

[kayhian]

SINGAPORE: Ascott Reit has agreed to buy three serviced residences in China and 11 rental residential properties in Japan for a total of S$287 million.

This will raise FY2012 distribution per unit by 2.9 per cent – from 8.76 cents to 9.01 cents.

Ascott Reit said the three serviced residences in China are located in Shanghai, Shenyang and Suzhou and they will continue to be managed by Ascott.

It will also be buying a portfolio of 11 rental properties (959 apartment units) across six cities in Japan, namely Fukuoka, Sapporo, Kyoto, Hiroshima, Saga and Sendai.

Besides adding 1,576 apartment units to its current 7,060 apartment units, the acquisitions will increase the trust's asset size by 11 per cent to S$3.1 billion.

The trust added that its share of assets from Asia will increase from 59 per cent to 63 per cent of its total asset value.

The number of cities where Ascott Reit has its presence will also be increased from 25 to 32 cities.

It is also actively on the lookout for acquisition targets.

Chief executive officer of Ascott Residence Trust Management, Ronald Tay said: “Hopefully we will be able to make some acquisitions in the second half of the year. We continue to like Asia very much. So the key markets like Singapore China, and potentially India as well as a new market. For Europe, we will continue to look at Europe on an opportunistic basis. Markets that we like are in Europe include London, Paris and key gateway cities in Germany. “

The acquisitions will be funded partly by the S$150 million raised from Ascott Reit's equity placement earlier this year and the balance will be funded by debts.

[lonewolf]

Ascott will be launching a 1-for-5 at $1 rights issue.

Announcement
Press Release

Use of proceeds
The Manager intends to use the gross proceeds of approximately S$253.7 million from the Rights Issue in the following manner:
(i) approximately S$204.9 million (equivalent to approximately 80.8% of the gross proceeds) will be used to pay down Ascott REIT’s debt;
(ii) approximately S$45.0 million (equivalent to approximately 17.7% of the gross proceeds) will be used to fund capital expenditure and asset enhancement initiatives, and for general corporate and working capital purposes;
(iii) approximately S$3.1 million (equivalent to approximately 1.2% of the gross proceeds) will be used to pay for the underwriting commission ; and
(iv) approximately S$0.7 million (equivalent to approximately 0.3% of the gross proceeds) will be used to pay the estimated professional fees and expenses and other fees and expenses expected to be incurred in connection with the Rights Issue.

Timetable:
[Image: Ascott-Rights-Timetable_zps626e8d04.jpg]

[AlphaQuant]

funny they are in such a hurry to raise $ to pay down debt.

perhaps some worries abt asset revaluations leading to a much higher gear and/or ability to roll over the debt?

[opmi]

Why is Capitaland and CMA so eager to divest out to their 'ATMs'? ART and CRCT together.

[MINX]

Why is Capitaland and CMA so eager to divest out to their 'ATMs'? ART and CRCT together.

To provide that extra boost to their FY13 earnings perhaps?
What are your views on this rights issue?

[kayhian]

INCOME from new property and a stronger performance from assets in Belgium and France delivered a strong fourth quarter for Ascott Residence Trust (Ascott Reit).

Distributable income for the three months to Dec 31 was $26.3 million, up 15 per cent from the from $22.8 million a year earlier.

Ascott Reit bought 14 properties in China and Japan on June 28.

It also benefited from a full quarter's contribution from Germany's Madison Hamburg, which it bought in November 2012. However these were partially offset by weaker performances from properties in the Philippines and Japan.

[greengiraffe]

Ascott 'to double in two years'
Larry Schlesinger
575 words
27 Feb 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Ascott, which bills itself as the world's largest serviced apartments owner and operator, plans to double its business in Australia within two years.

Unlike other hotel and serviced apartment groups, which do not hold large amounts of real estate, Ascott's core business is real estate investment holdings. The group owns 70 per cent of the 200 serviced apartments it operates worldwide in Asia Pacific, Europe and the Gulf region.

"We're looking to expand in Sydney, Melbourne and Perth either through outright investment, a joint venture or through a lease, management or franchising agreement," Kenneth Rogers, Ascott's regional general manager, told The Australian Financial Review.

Ascott has previously operated leased, serviced apartments in Sydney and is keen to return to the market.

A wholly-owned subsidiary of Singapore's CapitaLand, Ascott operates serviced apartments under two brands in Australia, Citadine and Somerset.

It recently opened its second Citadine Apart'hotel in St Georges Terrace, Perth, after a $5.1 million refit of the existing Somerset St Georges.

"We want to get greater economies of scale and are targeting doubling our current portfolio of 680 rooms over the next two years," Mr Rogers said. Ascott will typically spend between $100 million and $200 million buying properties with capacity of up to 200 rooms.

"We're looking for opportunities in existing buildings or working with Australian developers in a joint venture or turnkey project. We don't have our own development team here but would look to partner with someone locally."

Mr Rogers said properties generally delivered yields in the high single digits – between 7 per cent and 8 per cent – with ­serviced apartments generally more profitable than a pure hotel investment.

"They're more efficient than hotels. We don't have big expansive lobbies or big banquet halls. Our rooms drive a fairly good profit," he said.'Fair growth'

Average rates are around $200 a night in Perth and a bit less in ­Melbourne. Guests are predominantly corporate visitors as well as leisure and domestic travellers. Mr Rogers said he expected "fair growth" in terms of room rates and the capital value of the investments Ascott would make in Australia.

"We've owned property here for quite a while and received stable yields and returns," he said.

One of the challenges of operating in Australia was the country's high cost base, Mr Rogers said.

"The challenge is getting efficiency and productivity out of property over here. Business-wise, Australia is a pretty good place to invest in but you have to ensure that your costs don't blow out," he said.

Ascott will celebrate its 30th ­anniversary this year and has been in Australia since the early 2000s.

The new Citadine Apart'hotel in St Georges Terrace features 85 studio and one-bedroom apartments.

Mr Rogers said Ascott had rebranded Somerset St Georges Terrace Perth to a Citadines to cater for the growing demand from "savvy independent travellers". It s Citadines on Bourke was performing well with ­occupancy of more than 80 per cent.

"Bringing Citadines to Perth will ­enable us to strengthen our foothold in the city as demand for serviced residences remain strong from the resource and mining sectors," he said.

Ascott's expansion plans come as Australia's serviced apartment market undergoes significant growth.

Group's like Quest and Harry Triguboff's Meriton are expanding in the serviced apartments sector.


Fairfax Media Management Pty Limited

Document AFNR000020140226ea2r0002z

[kayhian]

Ascott Residence Trust reported a 16 per cent on-year rise in revenues and gross profit for the first quarter of 2014, helped by contributions from new properties and higher income from existing serviced apartments.

Ascott REIT's revenue for the first quarter was S$80.4 million.

Gross profit rose to S$39.2 million for the quarter, while distribution per unit (DPU) was 1.75 Singapore cents.

"Besides acquisitions which led to revenue growth, we saw strong performance for our operations in several markets. Revenue per available unit for Japan, United Kingdom and Belgium grew 18 per cent, 13 per cent and 11 per cent, respectively," CEO Ronald Tay said in a statement.

Tay also said Ascott REIT's properties in Singapore and Vietnam were also seeing improvements due to higher demand from executives on project assignments.

Ascott REIT's portfolio comprises 82 properties with 9,082 serviced apartments in 32 cities. The properties are operated under the Ascott, Citadines and Somerset brand names.

Ascott REIT's DPU was 22 per cent lower compared with the year-ago amount of 2.25 cents, as the number of units had risen following a rights issue in December 2013.

The DPU was, however, 5 per cent higher after adjusting for the effects of the rights issue and a one-off realised foreign exchange gain of S$8.1 million previously.