the unforeseen aviation accidents that happened in the beginning of the year which led to an overall
drop in visitor arrivals to Malaysia, occupancy at our property remained around 80% as we continue
to focus on long stay corporate travellers. Overall RevPAU for our property closed the year at S$101.
2015 Outlook
Most projections, including those of the World Bank and Asian Development Bank, remain positive
on Malaysia’s economy, despite concerns of the continuing low oil prices, and patchy economic
growth worldwide. According to EIU, Malaysia is expected to deliver 5.5% growth in GDP in 2015.
With strong domestic demand, the government’s commitment to reduce its fiscal deficit with the
introduction of Goods and Services Tax in 2015 and policies aimed at attracting foreign investments
into the country, Malaysia will continue to be a significant market within South East Asia in the near
future. We also expect visitor arrivals to improve vis-à-vis 2014 with the full operation of Kuala Lumpur
International Airport 2.
The Philippines
3 Properties 584 Units
S$’million
Total Revenue (2014)
30.2
Total Gross Profit (2014)
10.4
Valuation as at 31 December 2014
136.4
Ascott Reit has three serviced residences (two freehold and one leasehold) in the Philippines. The
362-unit Ascott Makati, 151-unit Somerset Millennium Makati and 138-unit Salcedo Residences (of
which Ascott Reit owns 71 units) are strategically located in Makati City’s Central Business District.
The average length of stay at our properties in the Philippines is more than two months.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Ascott Makati
21,518 21,137
87.5
Somerset Millennium Makati
5,765
6,024
12.7
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Ascott Makati
162
184
Somerset Millennium Makati
103
107
2014 Review
According to EIU, the Philippines economy grew at a slower pace of 6.0% in 2014 as compared to
7.2% in 2013. The negative effects of Typhoon Haiyan, which hit the country in November 2013, were
severely felt in 1Q 2014. The decreased production of the agricultural sector and weak government
spending had also contributed to the slowdown.
Despite this, the Philippines continued to be one of the fastest growing economies in Asia due to the
strong consumer spending supported by buoyant remittances from overseas Filipino workers and the
robust performance of the private sector, particularly the services industry. According to Tourism
Research and Statistics Division, arrival of international visitors from January to October 2014
increased by 2.3% as compared to the same period last year.
Pursuing Growth | 77
