29 Jul

Ascott’s 2Q Net Profit Rises A Robust 31%

Driven By A 141% Surge In Profit from Operations 

The Ascott Group’s second quarter net profit rose a robust 31 per cent to S$17.0 million, up from S$13.0 million previously. If portfolio gains and the charge from the new Financial Reporting Standard 39 (“FRS 39”) were excluded, Ascott’s net profit would have been 141 per cent higher at S$16.9 million compared to S$7.0 million in 2Q 2004.

Second quarter revenue surged 118 per cent to S$119.5 million, due to improved performance from Ascott’s serviced residences in China and Europe, and the consolidation of Citadines, which the group fully acquired at end October last year.

Ascott’s first half 2005 net profit rose eight per cent to S$19.4 million. If portfolio gains and the charge from the new FRS 39 were excluded, Ascott’s net profit would have been 80 per cent higher at S$21.6 million compared to S$12.0 million a year ago. 

First half 2005 revenue increased 108 per cent to S$219.2 million, driven by higher revenue per available room (REVPAR) across Ascott’s serviced residence operations.



Group Q2 05
Apr-Jun 05
S$ m
Q2 04
Apr-Jun 04
S$ m
Growth IH 05
Jan-Jun 05
S$ m
1H 04
Jan-Jun 04
S$ m
Revenue 119.5 54.9 118% 219.2 105.4 108%
Net Profit 17.0 13.0 31% 19.4 18.0 8%
Earnings Per Share 1.09 cts 0.84 cts 30% 1.24 cts 1.16 cts 7%
Net Asset Value Per Share       78.3 cts
at end June 2005
79.4 cts
at end Dec 2004

Mr Lim Chin Beng, Ascott’s chairman, said: “As more foreign business activities are conducted in Asia, the Asia Pacific has become one of the fastest growing regions, led by China and Vietnam with GDP growths of eight per cent and seven per cent. Today, our overseas contributions account for almost 90 per cent of our group revenue.

“Our successful international marketing initiatives have spurred double digit REVPAR growth at our residences in several countries, for example China, Japan, Philippines and Thailand. These include joint marketing programmes with organisations such as Singapore Airlines Krisflyer, Citibank and Cirque du Soleil.”

Mr Cameron Ong, Ascott’s chief executive officer, said: “Serviced residences have today become the fastest growing form of corporate accommodation in Asia. We are benefiting from an increased number of executives sent by multinational companies on international business assignments in the region. Ascott is poised to reap the rewards from this growth as the largest serviced residence operator with market leading brands - The Ascott and Somerset - in the Asia Pacific. We will also introduce the Citadines brand in Asia later this year.”

He added that Ascott has secured four new management contracts with almost 1,000 rooms in the first half of the year. It also invested in a serviced residence development in Guangzhou to tap China’s flourishing Pearl River Delta area.

Ascott has also soft-opened two new serviced residences, the 243-unit Somerset Park Suanplu in Bangkok’s main financial district, and 430-unit Somerset Palace in Seoul’s CBD. In the second half of the year, it will open five new serviced residences in the prime business districts of Dubai, Kuala Lumpur, Shanghai and Guangzhou.

Growing The Brands
During the year, Ascott further grew its brand reputation. It became the only Singapore company among 42 firms worldwide, to be chosen as best practice examples, from thousands of listed companies, in PricewaterhouseCoopers ‘2005 Good Practices in Corporate Reporting’ book. Ascott also achieved one of the top 10 scores in the latest Business Times Corporate Transparency index.

In China, Ascott achieved first position in the ‘China’s Top 100 Serviced Residences’ ranking, for the second year running, and its CEO was awarded the prestigious Hospitality Excellence Award. The group also won four Certificates of Excellence for quality management in Vietnam and was ranked the fourth top best employer in Malaysia.

Mr Ong said that the business outlook for the hospitality industry worldwide is positive. With its expanded presence in Europe through Citadines, and new properties to be opened, Ascott is well positioned to benefit through economies of scale and its leadership in the global serviced residence industry.

For 2005, Ascott’s profit from operations is expected to be higher than in 2004, although its portfolio gain is likely to be lower than in 2004. 
The Ascott Group is a leading international serviced residence company with 15,000 serviced residence units in 40 cities in 17 countries in Europe, Asia Pacific and the Gulf region. It is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed property companies.



The Ascott Group is a leading international serviced residence company with 15,000 serviced residence units in the key cities of Europe, Asia Pacific and the Gulf region.

Ascott's global presence spans 40 cities in 17 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai and Beijing in Asia; Sydney, Melbourne and Auckland in Australia/NZ; and Dubai in the Gulf region.

Through its marketing alliance with Equity Corporate Housing, the group also offers upper-tier serviced apartments throughout the US. Headquartered in Singapore, The Ascott Group pioneered the Asia Pacific's first branded luxury serviced residence in 1984. Today, it boasts a 21-year industry track record and serviced residence brands that enjoy recognition worldwide.

The group's flagship The Ascott luxury-tier brand projects an elegant lifestyle appealing to top executives. Its Somerset upper-tier brand offers stylish, contemporary living for senior to upper management executives. The Citadines brand provides corporate executives with vibrant urban lifestyle residences.

Recent awards the group has clinched include First Position in the 2005 ‘China's Top 100 Serviced Residences’ ranking for its eight properties in China; 2005 Vietnam Economic Times' ‘Best Service in Serviced Apartments’ awards in Hanoi and Ho Chi Minh City; and 2005 Thailand Apartment Living’s ‘Most Innovative Serviced Residence’ award for The Ascott Sathorn in Bangkok.

The group has also won the 2004 Business Traveller ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence property’ in Asia Pacific awards; and ‘Best Annual Report’ and ‘Best Operating & Financial Review’ awards at the 2004 Singapore Annual Report Awards.

Listed on the mainboard of the Singapore Exchange, Ascott is the serviced residence arm of CapitaLand Limited, one of Asia’s largest listed property companies. Headquartered in Singapore, the multinational company's core businesses in property, hospitality, property services and real estate financial services are focused in gateway cities in Asia, Australia and Europe. Its property and hospitality portfolio spans 90 cities in 28 countries.



Ida Lim, VP, Marketing Communications

Tel: (65) 6586 7230         

Hp: (65) 9628 8339     

Email: ida.lim@the-ascott.com

Cheong Kwok Mun, VP, Investor Relations

Tel: (65) 6586 7233         

Hp: (65) 9068 8465     

Email: cheong.kwokmun@@the-ascott.com

Lilian Goh, Manager

Tel: (65) 6586 7231         

Hp: (65) 9795 5225    

Email: lilian.goh@the-ascott.com