25 Jan

Ascott's FY 2007 Net Profit Increased 8% To S$177.3 Million

2007 Full Year Financial Statement

2007 Full Year Financial Results Presentation

For Immediate Release






The Group’s global portfolio crossed 20,000 units

Singapore, 25 January 2008 – The Ascott Group (Ascott) achieved a net profit of S$177.3 million in FY 2007, an increase of 8% compared to that in FY 2006. This was due to stronger profit from the Group’s operating assets and higher portfolio gains from asset divestment and revaluation.

Ascott’s profit from operating assets rose 25% to S$52.5 million in FY 2007 compared to the previous year. This was attributed to better operating performances in most of the markets in which the Group has presence as well as higher fee-based income from managing Ascott Residence Trust (ART) and Ascott China Fund.

The Group realised a net gain of S$124.8 million after taking into consideration portfolio gains and expenses incurred for asset development.  The portfolio gains are mainly from the divestment of Somerset Chancellor Court, Masters Golf & Country Club, Hotel Asia, Somerset Bayswater and two properties to Ascott China Fund, as well as revaluation gains from Ascott’s share of ART’s properties.

Mr Lim Chin Beng, Ascott’s Chairman said: “2007 is another milestone year for Ascott. The Group surpassed 2006’s profit by 8% and its property portfolio crossed 20,000 units worldwide.  Ascott continued to expand aggressively in 2007 in markets where it already has presence, and entered three new countries and 10 new cities.  Today, the Group’s portfolio spans 55 cities in 23 countries. This further strengthens Ascott’s leadership position as the world’s largest international serviced residence owner-operator.”

Ms Jennie Chua, Ascott’s President & CEO said: “Ascott performed well in 2007. While we have divested six properties, we have also committed a total of S$576 million in 13 investments and opened nine properties in eight cities in Asia Pacific and the Gulf region. We also launched the Ascott China Fund to further strengthen our presence in China. This is the first private equity fund dedicated to investing in serviced residences across the country.”

More information

Group FY 2007
FY 2006
Revenue 435.3 405.9 +7%
Operating EBITDA 117.3 114.4 +3%
Profit After Tax and Minority Interest (PATMI) 177.3 163.6 +8%
Net profit from operating assets 52.5 41.9 +25%
Portfolio gains (includes revaluation gains) 154.6 136.0 +14%
Expenses incurred for development (29.8) (14.3) -108%
Basic earnings per share 11.1 cts 10.3 cts +0.8 cts

For more information on Ascott's unaudited results for the period ended 31 December 2007, please visit https://www.theascottgroup.com/mediainvestors/newscentre.html?year=2007 .
Post financial year-end event

DBS Bank Ltd (“DBS”) had on 8 January 2008 announced, for and on behalf of Somerset Capital Pte Ltd (the “Offeror”), a wholly-owned subsidiary of CapitaLand Limited (“CapitaLand”), that the Offeror intends to make a voluntary unconditional cash offer (the “Offer”) for all the issued ordinary shares in the capital of the Company other than those already held by the Offeror, Somerset Land Pte Ltd and Areca Investment Pte Ltd as at the date of the Offer. Depending on the outcome of the Offer, the Company may be delisted from the Singapore Exchange Securities Trading Limited and/or become a wholly-owned subsidiary of CapitaLand. DBS's announcement of the Offer with regard to the Offeror's rationale for making the Offer can be found at www.sgx.com.

About The Ascott Group

The Ascott Group is the world’s largest international serviced residence owner-operator with close to 15,000 operating serviced residence units in key cities of Asia Pacific, Europe and the Gulf region, as well as about 6,000 units which are under development, making a total of close to 21,000 units.

The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 55 cities in 23 countries, 13 of which are cities where Ascott's serviced residences are being 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 24-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Ascott Group's achievements have been recognised internationally.  Recent awards include TravelWeekly China Industry Awards 2007 ‘Best Serviced Residence’, Business Traveller China Awards 2007 ‘Best Serviced Residence Brand’, World Travel Awards 2007 ‘Australasia’s Leading Hotel’ and ‘New Zealand’s Leading Hotel’, TTG Travel Awards 2007 ‘Best Serviced Residence Operator’, Securities Investors Association of Singapore Investors’ Choice Awards 2007 ‘The Most Transparent Company (Hotel & Restaurants)’, 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 100 cities in over 20 countries.

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

Celina Low, Vice-President, Corporate Communications

Tel: (65) 6500 3399 

Hp: (65) 96825458 

Email: celina.low@the-ascott.com

Joan Tan, Senior Manager, Corporate Communications

Tel: (65) 6500 3401    

HP: (65) 9743 9503 

Email: joan.tan@the-ascott.com