Ascott Residence Trust Posts 52% Decrease In Distribution Per Stapled Security
January 27, 2021 – Ascott Residence Trust announced that they have hit a distribution per stapled security (DPS) level of 1.99 Singapore cents for the second half of 2020 (H2), a 52% decrease compared to 4.18 cents in H2 2019.
The REIT posted a distributable income of S$61.7 million in H2 2020 and S$94.2 million in FY 2020 amidst the COVID-19 pandemic. The distributable income for H2 2020 is a 32% decline compared to H2 2019.
To mitigate the impact of COVID-19, replace loss income from divested assets and to share past divestment gains with Stapled Securityholders, a one-off partial divestment gain of S$40 million will be distributed to Stapled Securityholders. It has also released the S$5 million of distributable income which was retained in H1 2020.
Mr Bob Tan, Chairman of Ascott Residence Trust Management Limited (ARTML) and Ascott Business Trust Management Pte. Ltd. (the Managers of ART) said: “ART’s properties that cater predominantly to the long-stay customer segment, our geographically diversified presence, and mix of stable and growth income streams have helped to cusion the impact of COVID-19 on ART’s financial performance.”
“About two-thirds of ART’s gross profit was from master leases and management contracts with minimum guaranteed income which provide us with more stability. Given the resurgence and uncertainty around new strains of the coronavirus, global economic recovery remains fragile. Nonetheless, ART is well-capitalised and continues to build on our financial strength.”
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