Ascott's 2Q 2007 Net Profit Surged 75% to S$88.1 Million

1H 2007 net profit increased 6% to S$97.8 million

Singapore, 26 July 2007 – The Ascott Group’s (Ascott) net profit in 2Q 2007 surged 75% to S$88.1 million, compared to its 2Q 2006 net profit of S$50.3 million.  The Group’s net profit for 1H 2007 also increased 6% to S$97.8 million from the S$92.6 million posted in 1H 2006. The strong profit was underpinned by the realisation of portfolio gains from divestments and the Group’s strong operating performance.

Ascott achieved net profit from operating assets of S$22.0 million in 2Q 2007 and S$30.3 million in 1H 2007, an increase of 18% and 28% respectively compared to the same periods in 2006. This was attributed to strong operating performances from most of the markets in which the Group has presence, in particular the Philippines, Singapore, Vietnam and Europe, as well as higher fee income.

Mr Lim Chin Beng, Ascott’s Chairman said: “Ascott has put up a good performance in 2Q 2007, achieving a 75% rise in net profit.  To propel the Group’s continued growth, we launched the Ascott Serviced Residence (China) Fund in April this year. The fund successfully closed with capital commitments of US$500 million, of which 33% is committed by Ascott.  The Group can further benefit from higher fee-based income through new management contracts, REIT management fees from Ascott Residence Trust and fund management fees from Ascott Serviced Residence (China) Fund.”

For full year 2007, Ascott’s portfolio gains and operating performance are expected to remain strong.

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* Revenue for 2Q 2007 increased by 9% to S$107.1 million from the S$98 million posted in 2Q 2006. The increase was mainly attributed to the better performance of Ascott’s serviced residences in Europe and contribution from new properties in North Asia. In tandem with the higher revenue, Ascott’s operating EBITDA for 2Q 2007 also grew 14% to S$36.9 million compared to that in 2Q 2006.

# The decreases in Ascott’s revenue and operating EBITDA in 1H 2007 were mainly attributable to Ascott’s divestments in 2006.  On a same store basis, i.e. excluding the revenue of the 2006 divestments and contribution from new properties in 2007,   Ascott’s revenue and operating EBITDA for 1H 2007 would have been increased by 19% and 24% respectively over that of 1H 2006.

About The Ascott Group

The Ascott Group is the largest international serviced residence owner-operator outside the United States with over 19,500 serviced residence units in key cities of Asia Pacific, Europe and the Gulf region. This includes over 5,500 units which are under development. 

The Group operates three brands – Ascott, Somerset and Citadines. Its portfolio spans 50 cities in 21 countries, nine of which are new cities where Ascott’s serviced residences are being developed. Ascott’s properties can be found in cities including London, Paris, Brussels, Berlin and Barcelona in Europe; Singapore, Bangkok, Hanoi, Kuala Lumpur, Tokyo, Seoul, Shanghai, Beijing and Hong Kong 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 TravelWeekly Asia Industry Awards 2007 ‘Best Serviced Residence (Group)’, China 2007 ‘Top 100 Serviced Apartments Award’, 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.asp

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.

For more information on The Ascott Group’s property listings, visit
https://www.the-ascott.com/AboutUs/ResiPortfolio.asp