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Ascott Residence Trust Sees 60% to 70% Fall In 2020 Distribution Per Stapled Security

January 20, 2021 – Ascott Real Estate Investment Trust and Ascott Business Trust announced its profit guidance on its financial results for the full year of 2020 (FY 2020).

Based on the preliminary review of its draft and unaudited financial statements for FY 2020, Ascott announced that:

  • Its income available for distribution for FY 2020 is expected to reduce by 40% to 50% from the S$165.6 million recorded for the financial year ended 31 December 2019 (FY 2019)

Its distribution per stapled security (DPS) for FY 2020 is expected to reduce by 60% to 70% from the 7.61 Singapore cents recorded for FY 2019

Its portfolio will decline approximately 6% to 8%, resulting in unrealised fair value losses of S$325 million to S$345 million

“While there has been a gradual pick-up in demand for accommodation since the easing of travel restrictions, the pace of recovery has varied across markets. Countries with large domestic markets have led the recovery, as locals restart their travels during the weekends and holidays. The surge in domestic travel has, however, resulted in new waves of infections, prompting fresh lockdowns and stay-at-home orders. As at 31 December 2020, 10 ART properties were temporarily closed,” the REIT said.

“The COVID-19 situation remains fragile. While advances in vaccine development have brought renewed optimism, there is uncertainty around new strains of the coronavirus. As travel resumes, risks of a resurgence remain,” it added.

Read more here..

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