Ascott Residence Trust weathers property market headwinds with extended-stay model
Revenue increased 13.2% to $95M.
Singapore’s lacklustre property market may have a tiny bright spot.
According to a report by OCBC, Ascott Residence Trust registered good financials in 4Q14, with revenue increasing by 13.2% to $95M, and DPU jumping 62.4% to 2.16 S cents. For FY14, revenue climbed 12.8% to S$357.2M and formed 100.3% of our FY14 estimate. DPU of 8.2 S cents represented a slight decline of 2.4% but was analyst forecast.
According to OCBC, although the global macroeconomic environment remains challenging, ART expects its operational performance to remain healthy given its resilient extended-stay business model.