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Ascott Residence Trust
Annual Report 2015
Financial Review
OPERATING PERFORMANCE
Revenue
Ascott Reit’s revenue of S$421.1 million for the
financial year ended 31 December 2015 (“FY 2015”)
comprised S$68.4 million (16% of total revenue) from
serviced residences on master leases, S$77.4 million
(18%) from serviced residences on management
contracts with minimum guaranteed income and
S$275.3 million (66%) from serviced residences on
management contracts.
Revenue for FY 2015 increased by S$63.9 million
or 18% as compared to the previous financial year
ended 31 December 2014 (“FY 2014”). The increase
in revenue was mainly due to the additional revenue
of S$32.7 million from the nine properties acquired
in 2014 (the “2014 Acquisitions”) and S$33.4 million
from the six properties acquired in 2015 (the “2015
Acquisitions”).
The increase was partially offset by the decrease
in revenue of S$1.1 million from the divestment of
six rental housing properties in the regional cities
of Japan and decrease of S$0.4 million due to the
expiry of the deed of yield protection for Somerset
West Lake Hanoi in March 2014.
On a same store basis, revenue decreased by
S$0.7 million mainly due to lower revenue from
France and Germany (arising from depreciation
of EUR against SGD), partially offset by stronger
performance from the Group’s serviced residences
in China and Vietnam.
Ascott Reit’s portfolio occupancy remained stable
at 80%. Revenue Per Available Unit (RevPAU)
increased by S$5, or 4%, from S$128 in FY 2014 to
S$133 in FY 2015. On a same store basis (excluding
the 2014 Acquisitions and 2015 Acquisitions), RevPAU
increased by 1%.
Gross Profit
Ascott Reit’s gross profit of S$204.6 million for
FY 2015 comprised S$60.9 million (30% of total
gross profit) from serviced residences on master
leases, S$33.4 million (16%) from serviced residences
on management contracts with minimum guaranteed
income and S$110.3 million (54%) from serviced
residences on management contracts.
In line with the increase in revenue, gross profit
for FY 2015 increased by S$24.4 million or 14% as
compared to FY 2014.
