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Ascott Residence Trust
Annual Report 2015
Portfolio Overview
Master Leases
25 of our properties, 17 in France, three in Germany,
three in Australia, one in Japan and one in Singapore,
are on master leases. The master lessees pay fixed
net rental per annum to Ascott Reit. The master
leases in Europe are subject to annual rental revisions
pegged to indices representing construction cost,
inflation or commercial rental prices. The master
leases in Australia are subject to fixed indexation per
annum until the next market review. These master
leases have an weighted average remaining tenure of
about three years.
Serviced Residence Management Contracts
64 of our properties are on serviced residence
management contracts, comprising seven properties
on serviced residence management contracts with
minimum guaranteed income and 57 properties on
serviced residence management contracts without
minimum guaranteed income. Serviced residence
management contracts are entered into between
Ascott Reit and SRMCs which provide serviced
residence management services to Ascott Reit. Unlike
the properties under master lease arrangements,
guests will lease the units of the serviced residences
directly from Ascott Reit or its subsidiaries (for
serviced residences outside of Japan) or other entities
acting on behalf of Ascott Reit (for serviced residences
within Japan
1
). Therefore, the Manager of Ascott Reit
has obtained a waiver from the Monetary Authority
of Singapore in relation to paragraphs 11.1(c)(iv) and
(v) of the Property Funds Appendix regarding the
disclosures of lease maturity profile and weighted
average lease expiry for properties under serviced
residence management contracts, subject to the
following disclosures:
(1) the average length of stay of guests of properties
under the ser viced residence management
contracts (combined for both serviced residence
management contracts with and without minimum
guaranteed income) for current year and past five
years; and
(2) the weighted average remaining term of the
serviced residence management contracts with
minimum guaranteed income.
Serviced Residence Management Contracts
with Minimum Guaranteed Income
Seven of our properties across United Kingdom,
Belgium and Spain are on ser viced residence
management contracts with minimum guaranteed
income. Under the serviced residence management
contracts with minimum guaranteed income, the
SRMCs have provided a minimum income guarantee
to Ascott Reit over the term of such management
contracts which helps to ensure a stable income
stream for Ascott Reit in the event that the properties
under such management contracts do not generate
applicable minimum income quantum. These
management contracts have an weighted average
remaining term of about five years.
Serviced Residence Management Contracts
without Minimum Guaranteed Income
57 of our properties across Australia, China, Indonesia,
Japan, Malaysia, the Philippines, Singapore, the
United States of America and Vietnam are on serviced
residence management contracts without minimum
guaranteed income. Under the serviced residence
management contracts without minimum income
guarantee, the income stream is dependent on the
revenue per available unit of the properties under such
management arrangements.
1
In Japan, Ascott Reit’s interests in properties are indirectly held as trust beneficial interests through the godo kaisha and tokutei mokuteki
kaisha structures and Singapore special purpose vehicles.
