Ascott’s 1Q 2007 Profit From Operations More Than Doubled
Net profit for 1Q 2007 is S$9.7 million
Singapore, 26 April 2007 – The Ascott Group's (Ascott) net profit from operations more than doubled from S$1.8 million in 1Q 2006 to S$3.8 million in 1Q 2007, despite the divestment of 15 properties in 2006.
The Group's robust growth in its profits from operations was underpinned by a strong overall revenue per available apartment unit (RevPAU) growth from S$109 in 1Q 2006 to S$124 in 1Q 2007 on a same store basis. Its serviced residence operations in majority of the geographical regions including Korea (67%), United Kingdom (33%), Singapore (27%) and the Philippines (21%) achieved impressive growth in RevPAU.
Ascott's net profit in 1Q 2007 was S$9.7 million compared to S$42.3 million in 1Q 2006 as the net profit in 1Q 2006 included a significant gain of S$40.5 million from the divestment of 12 properties to Ascott Residence Trust (ART). The estimated gain of S$22.2 million from the divestment of Hotel Asia is expected to be booked in 3Q 2007.
Mr Cameron Ong, Ascott's Managing Director & CEO said: "Business and market sentiments in Asia and Europe remain positive and will continue to drive RevPAU growth for The Ascott Group's serviced residences. Our asset enhancement plans will further improve the performance of our properties. We have also invested substantially in assets under incubation which will provide a strong pipeline to contribute to Ascott's operating performance and potential portfolio gains in the future. The Group's operating performance and portfolio gains in 2007 are expected to remain strong and profitable."
"As part of the Group's further expansion, Ascott also launched a private equity investment fund, Ascott Residence (China) Incubator Fund today. We target to raise between US$300 million and US$500 million to fund our expansion in China. Ascott plans to hold an equity stake of at least 30% in the fund, subject to a maximum of US$200 million, as a demonstration of our commitment to the fund and confidence in China's serviced residence industry," added Mr Ong.
* The decreases in Ascott's revenue and operating EBITDA were mainly attributable to Ascott's divestments in 2006. Without these divestments, Ascott's revenue and operating EBITDA for 1Q 2007 would have increased by 25% and 34% respectively.
About The Ascott Group
The Ascott Group is the largest international serviced residence owner-operator outside the United States with about 19,000 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region.
The Group operates three brands - Ascott, Somerset and Citadines. Its portfolio spans 47 cities in 21 countries including London, Paris, Brussels, Berlin, Barcelona and Moscow in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing, Hong Kong and Chennai in Asia; Sydney, Melbourne and Auckland in Australia / New Zealand, as well as Dubai in the Gulf region.
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 Vietnam Economic Times 2006 'Golden Dragon Award', The Asset's 2006 'Triple A Country Award for Best Deal in Singapore', Travel Weekly China 2006 'Best Serviced Residence', Business Traveller China 2006 'Best Serviced Residence Brand in China', TTG Travel 2006 'Best Serviced Residence', 2006 World Travel Awards, Business Traveller Asia Pacific 2006 '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 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.
Celina Low, Vice President, Corporate Communications
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