26 Oct
2007

Ascott Achieves Double-Digit Revenue Growth For 3Q 2007

Operating EBITDA also grew 16% to S$31.9 million in third quarter

Singapore, 26 October 2007 – The Ascott Group (Ascott) achieved strong operating performance in 3Q 2007, compared to the same period last year. Revenue was up 17% at S$116.5 million net profit on operating assets also grew 4% to S$12.7 million, attributed to better operating performances in most clusters as well as higher fee-based income from managing Ascott Residence Trust (ART) and Ascott China Fund.

In tandem with the higher revenue, the Group’s operating earnings before interest, taxation, depreciation and amortization (operating EBITDA) recorded a 16% jump, from S$27.6 million in 3Q 2006 to S$31.9 million in 3Q 2007.

Portfolio gains from asset divestment continued to contribute significantly to the Group’s results. In 3Q 2007, a net gain of S$28.3 million was achieved from the divestment of Hotel Asia in Singapore, Somerset Bayswater in the United Kingdom and two seed projects in Ascott China Fund. This portfolio gain was, however, lower than that in 3Q 2006. As a result, net profit for 3Q 2007 stood at S$34.1 million.

Mr Lim Chin Beng, Ascott’s Chairman, said: “The Ascott Group’s continued good performance in operating assets is underscored by strong operating fundamentals that the Group has built over the years. We will continue to drive our business by seeking out opportunities in both existing and new markets. In the third quarter of this year alone, we expanded our global footprint into three new cities – Aktau, Astana and Edinburgh – and one new country, Kazakhstan.”

Ms Jennie Chua, Ascott’s President & CEO, said: “Ascott will continue to acquire and incubate assets to build up a strong pipeline for portfolio gains in the future. We also expect to benefit from higher fee-based income from three sources – new management contracts, ART and Ascott China Fund. The Group’s portfolio gains and operating performance in 2007 are expected to remain strong.”

More information

Group 3Q 2007
S$m
3Q 2006
S$m
Change YTD Sep 2007
S$m
YTD Sep 2006
S$m
Change
Revenue 116.5 99.2 +17% 318.8 303.7 +5%
Operating EBITDA 31.9 27.6 +16% 89.5 88.0 +2%
Profit After Tax and
Minority Interest (PATMI)
34.1 57.4 -41% 131.9 150.0 -12%
Comprises:            
Net profit from operating
assets
12.7 12.2 +4% 40.2 33.2 +21%
Portfolio gains net of tax
and provisions
28.3 49.2 -42% 110.4 126.3 -13%
Expenses incurred for
development
(6.9) (4.0) -73% (18.7) (9.5) -97%
Basic earnings per share 2.1 cts 3.6 cts -1.5 cts 8.1 cts 9.3 cts -1.2 cts


About The Ascott Group

The Ascott Group is the largest international serviced residence owner-operator outside the United States with close to 14,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as 5,500 units which are under development, making a total of about 19,500 units.

The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 53 cities in 23 countries, 11 of which are cities where Ascott's serviced residences are being newly developed.

The Ascott Group is headquartered in Singapore. It pioneered Asia Pacific's first branded luxury serviced residence in 1984. It also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, the Group boasts a 23-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Ascott Group's achievements have been recognised internationally. Recent awards include Business Traveller UK Awards 2007 'Best Serviced Residence Company', Business Traveller Asia Pacific Awards 2007 'Best Serviced Residence Brand' and 'Best Serviced Residence' and Forbes China 2008 ‘China’s Best Serviced Apartments. For a full list of awards, please visit
https://www.theascottgroup.com/aboutus/awards

Listed on the mainboard of the Singapore Exchange, The Ascott Group is the serviced residence arm of CapitaLand Limited, one of the largest listed real estate companies in Asia. Headquartered in Singapore, the multinational company's core businesses in real estate, hospitality and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. The company's real estate and hospitality portfolio spans more than 90 cities in over 20 countries.

For more information on The Ascott Group’s property listings, visit https://www.theascottgroup.com/aboutus/group_directory.html