Ascott Achieves S$80.9 Million In Net Profit, Four-Fold Over 1H 2005
Singapore, 28 July 2006 – The Ascott Group (Ascott) has put up a sterling performance; achieving a net profit of S$80.9 million, four-fold that of the S$19.4 million posted in the first half of 2005. Ascott’s net profit for the first six months also surpassed its full year 2005 net profit of S$41.9 million.
The strong profit was not only underpinned by the realisation of portfolio gains of S$62.4 million from the Group’s divestments of 12 serviced residences to Ascott Residence Trust (ART) and Liang Court Shopping Centre, it was also supported by the Group’s strong operating fundamentals.
Notwithstanding the divestments, Ascott’s net profit from operations in the first half of 2006 also exceeded that of the comparative period in 2005 by 6% from S$17.4 million to S$18.5 million.
Correspondingly, with the divestment of the 12 properties to ART, Ascott’s revenue and operating EBITDA for the first half of 2006 decreased by 7% to S$204.5 million and 8% to S$60.4 million respectively.
Revenue per available unit for Ascott’s serviced residences in the Philippines (25%), Singapore (17%) and the United Kingdom (11%) registered double digit growth for the first half of 2006.
Mr Lim Chin Beng, Ascott’s Chairman said, “The Ascott Group has created a value chain for its serviced residence business; from the acquisition of real estate to development, reconfiguration, leasing, operation and divestment. With Ascott’s new business model as a manager of serviced residences and an incubator of assets for ART, the Group is well-poised to capitalise on attractive investment opportunities. These opportunities include the expansion of its serviced residence management business and the securing of attractive acquisitions in Singapore and overseas.”
Mr Cameron Ong, Ascott’s Managing Director and Chief Executive Officer said, “The Ascott Group has achieved a sterling performance in its net profit for the first six months; having achieved S$80.9 million which is four-fold that of the first half of 2005. We have further sharpened our focus on growing our serviced residences business; having successfully divested Liang Court Shopping Centre, and increasingly taking equity stakes in the development of serviced residences located in strategic high-growth markets. From January to June this year, we have invested close to S$400 million in eight new properties.”
Mr Ong added, “Moving forward we will continue to strengthen our portfolio not only in Asia but also in Europe which constitutes more than half of the Group’s total asset value of S$1.9 billion, and contributed 57% of our total revenue for the first half of 2006. The Group’s net profit is set to climb higher when the estimated gain of S$78.3 million for the divestment of The Ascott Mayfair is booked in the second half of 2006.”
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*The revenue of S$98 million for the second quarter of 2006 decreased by 18% over the corresponding period last year. This decrease was attributable mainly to the divestment of 12 properties to ART in March 2006, as well as exchange differences on translation of our Europe results to the Singapore dollar. In tandem with the lower revenue, the operating EBITDA of S$32.4 million for the second quarter of 2006 was lower by 23% over the corresponding period last year.
Without the ART divestment and translation differences for the Euro currency, the revenue and operating EBITDA for the second quarter of 2006 would have increased by 6% and 5% respectively.
Despite the lower revenue, the second quarter net profit of S$37.1 million was more than double that of S$17.0 million in the second quarter of 2005 on the back of portfolio gains and lower interest cost.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with about 16,000 serviced residence units in key cities of Asia Pacific, Europe and the Middle East.
The Group operates three brands – The Ascott, Somerset and Citadines in 43 cities in 17 countries. These include London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Pattaya, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Xi’an and Hong Kong in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand as well as Dubai in the Middle East.
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 22-year industry track record and serviced residence brands that enjoy recognition worldwide.
The Ascott Group’s achievements have been recognised internationally; it has clinched numerous prestigious awards including the ‘Most Outstanding International Brand’ award from Apartment Living magazine in Thailand, ‘2006 Korea Top Brand’ award by Seoul Economy newspaper, Korea Herald’s ‘Readers’ Best Brand Awards 2006’, ‘2006 Best Company & CEO’ award from the Herald Business in Korea, the ‘Best Serviced Residence Brand’ award by Lifestyle + Travel magazine in Thailand, the ‘Innovative Capital Venture’ award at the 2006 China Hotel Investment Summit, 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, The Ascott Group 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.
Celina Low, Vice President, Corporate Communications
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Low Su Lin, Manager, Corporate Communications
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Lilian Goh, Investor Relations
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