OPERATING PERFORMANCE
Revenue
Ascott Reit’s revenue for the financial year ended 31 December 2014 (“FY 2014”) of S$357.2 million
comprised S$66.3 million (19% of total revenue) from serviced residences on Master Leases, S$77.2
million (22%) from serviced residences on management contracts with minimum guaranteed income
and S$213.7 million (59%) from serviced residences on management contracts.
Revenue for FY 2014 increased by S$40.6 million or 13% as compared to the previous financial year
ended 31 December 2013 (“FY 2013”). The increase in revenue was mainly due to the additional
revenue of S$37.2 million from three properties in China and 11 rental housing properties in Japan
acquired on 28 June 2013 (the “2013 Acquisitions”) and the nine properties acquired in 2014 (the
“2014 Acquisitions”).
The increase was partially offset by the decrease in revenue of S$4.2 million from the cessation of
operations for Somerset Grand Fortune Garden Property Beijing arising from the ongoing strata sale
of units and decrease of S$1.2 million due to the expiry of the deed of yield protection for Somerset
West Lake Hanoi.
On a same store basis, revenue increased by S$8.8 million mainly due to stronger underlying
performance from the Group’s serviced residences in United Kingdom, Belgium and Japan and
appreciation of EUR and GBP against SGD.
Ascott Reit’s portfolio occupancy remained relatively stable at about 80%. Revenue Per Available
Unit (RevPAU) decreased by S$4, or 3%, from S$132 in FY 2013 to S$128 in FY 2014. This was mainly
attributed to weaker performance from Singapore and Philippines and lower ADR from the properties
acquired in 2014. On a same store basis (excluding the 2013 Acquisitions, 2014 Acquisitions and
contribution from Somerset Grand Fortune Garden Property Beijing), RevPAU increased by 3%.
Gross Profit
Ascott Reit’s gross profit for FY 2014 of S$180.2 million comprised S$58.4 million (32% of total gross
profit) from serviced residences on Master Leases, S$31.5 million (18%) from serviced residences on
management contracts with minimum guaranteed income and S$90.3 million (50%) from serviced
residences on management contracts.
In line with the increase in revenue, gross profit for FY 2014 increased by S$19.0 million or 12% as
compared to FY 2013.
Financial Review
Pursuing Growth | 55
