20 Apr
2006

Ascott’s 1Q 2006 Operating EBITDA Improves by 21%

Group 1Q 06
S$ m
1Q 05
S$ m
change  
Revenue 106.5 99.7 7%
       
Operating EBITDA 28.0 23.2 21%
       
Profit After Tax and
Minority Interest (PATMI)    
   Comprises:
   Net Profit From Operations  
   Net Portfolio Gain
43.8


3.3
40.5
2.4


2.4
-
nm
  

33 %
nm
       
Basic Earnings Per Share 2.77 cts 0.16 cts +2.61 cts


Singapore, 20 April 2006 – The Ascott Group’s (Ascott) operating EBITDA for the first quarter of 2006 (1Q 2006) increased to S$28.0 million, 21% over that of 1Q 2005.

The Group’s 1Q 2006 net profit jumped by more than 16 times from S$2.4 million to S$43.8 million. The strong profit was largely underpinned by the realisation of capital gains from the Group’s divestment of 12 investment properties to Ascott Residence Trust (ART). Net profit from operations also grew strongly by 33% to S$3.3 million. 

Ascott’s revenue for the first quarter grew by 7% to S$106.5 million over that of the corresponding period last year. The increase in revenue was enhanced by overall revenue per available unit (REVPAU) growth, with double digit increases attained by the Philippines (26%), Singapore (19%) and the United Kingdom (12%). The consolidation of revenue from The Ascott Beijing (China), The Ascott Mayfair (United Kingdom) and Somerset Ho Chi Minh City (Vietnam), arising from Ascott’s increased shareholdings in these properties, also contributed to the higher revenue. Revenue for 1Q 2006 would have increased by 12% if the translation differences of Europe accounts at a lower exchange rate for this quarter were excluded.

Mr Lim Chin Beng, Ascott’s Chairman, said: “Ascott’s strong results and the successful listing of ART on the Singapore Exchange once again demonstrate the commitment of the Board and Management to unlock shareholder value. Since the announcement of the setting up of ART on 20 January 2006 to the end of March, the Group has increased shareholder value by $0.42 per Ascott share.”

Mr Cameron Ong, Ascott’s Managing Director and Chief Executive Officer, added: “Ascott enjoys leadership position in Asia and Europe where it is the single largest owner and operator with close to 120 properties. Six properties are expected to be opened this year, including our first Citadines property in Asia, Citadines Shanghai Jinqiao and our first property in the Middle East, Somerset Jadaf, Dubai.”

“With rising foreign direct investments, further growth is expected in the serviced residence industry in Asia. We are confident that the Group is poised for stronger growth this year, especially with the transformation of our business model through the creation of ART.”

 



About The Ascott Group

The Ascott Group is a leading international serviced residence company with 15,500 serviced residence units in key cities of Europe, Asia Pacific, and the Middle East.

Ascott’s global presence spans 41 cities in 17 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai and Beijing in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand as well as Dubai in the Middle East.

Headquartered in Singapore, The Ascott Group pioneered Asia Pacific’s first branded luxury serviced residence in 1984. The Group also established the world’s first pan-Asian serviced residence real estate investment trust, Ascott Residence Trust in 2006. Today, Ascott boasts a 21-year industry track record and serviced residence brands that enjoy recognition worldwide.

The Group operates three brands – The Ascott, Somerset and Citadines. Its achievements have been recognised internationally; it has clinched numerous prestigious awards including the 2006 ‘China’s Top 100 Serviced Apartments’ award, Korea Times’ ‘Best International Serviced Residence Brand’ award, the ‘Highly Commended Deluxe Accommodation’ award at the 2005 Tasmanian Tourism Awards, ‘Best Accommodation’ at the 2005 World Travel Awards, TTG Asia Media’s 2005 ‘Best Serviced Residence Operator’ award, and the Business Traveller Asia Pacific’s 2005 ‘Best Serviced Residence Brand’ and ‘Best Serviced Residence’ awards.

For a full list of awards, please visit : https://www.the-ascott.com/aboutus/awards_and_accolades.html?year=2007

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 and real estate financial services are focused in gateway cities in Asia Pacific, Europe and the Middle East. Its property and hospitality portfolio spans more than 70 cities in 18 countries.

For reservations on Ascott properties, call Central Reservations on (65) 6272-7272 or visit www.the-ascott.com