Ascott Residence Trust (ART) has reported a portfolio revenue per available unit (RevPAU) of $67, 22% higher y-o-y during the 1QFY2022 ended March. The higher figure was driven by higher average daily rates (ADR) and occupancy, says its manager.
Revenue and gross profit increased y-o-y due to contributions from the trust’s newly-acquired properties and its stronger operating performance.
During the quarter, the REIT saw higher stable income contribution as it received its first full-quarter of income contribution from four US properties acquired in the 4QFY2021.
Excluding the contributions from 11 new properties and three properties that were divested in the FY2021, same-store revenue was higher y-o-y.
Longer-stay properties contributed an estimated 28% of the gross profit in the 1QFY2022, up from the 12% contribution in the corresponding period the year before.
In Australia, ART saw RevPAU of A$71 ($69.89), up 6% y-o-y as the country moved to live with Covid-19 as an endemic. The pent-up demand after the reopening of its borders led to a surge in bookings in March and April. The performance of ART’s hotels in the country is expected to pick up in the 2QFY2022.
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RevPAU in China fell 21% y-o-y mainly due to the divestment of Somerset Xu Hui in Shanghai in May 2021. During the 1QFY2022, ART’s Chinese portfolio saw RevPAU decline 4% y-o-y to RMB221 ($46.33) on a same-store basis due to the impact of the Omicron outbreak.
RevPAU in France increased by 8% y-o-y, which excludes the divestments of Citadines Didot Montparnasse Paris and Citadines City Centre Grenoble in the 1HFY2021. In France, ART saw revenue grow by 8% y-o-y to EUR4 million ($5.8 million). Occupancies in the country are expected to remain high. ADR is also expected to improve gradually in the 2QFY2022.
RevPAU in Japan increased by 37% y-o-y to 2,699 yen ($28.69) despite the restrictions, due to the low base from the state of emergency imposed in the country the same period the year before. When the quasi-emergency curbs were lifted in March, there was an uptick in leisure demand.
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Singapore’s RevPAU fell 16% y-o-y to $51 mainly due to the transition of Riverside Hotel Robertson Quay out of its block booking in January to receive public guests. On a same-store basis, Singapore’s RevPAU grew by 7% y-o-y to $65 on a same-store basis.
In the UK, RevPAU surged 700% y-o-y to GBP70 ($121.13) on the back of stronger demand after the lifting of travel restrictions and from the low base of GBP14 in the same period the year before. During the quarter, long stays and student groups provided a strong occupancy base for the properties. ART’s UK portfolio also registered an uptick in demand for business travel and corporate groups, which enabled the properties to command higher rates. The trust says it is positive on its UK portfolio’s outlook as it continues to further recover towards pre-Covid levels.
In the US, RevPau increased 31% y-o-y to US$76 ($105.33) as the trust saw y-o-y growth in the performance of Element New York Times Square West and voco Times Square South. ART’s hotels in the country recovered quickly in February on the back of subsiding Omicron cases. The growth is expected to be sustained into the 2QFY2022. Voco Times Square South is also well-poised to capture convention-related demand as city-wide events return.
Vietnam saw 1QFY2022 RevPAU fall 5% y-o-y to VND712,000 ($42.72) as the Covid-19 situation deteriorated in the country. Ho Chi Minh properties are expected to see an improvement in performance first, compared to Hanoi, as it welcomes more business travellers and corporate groups in the coming months, says the trust.
Its rental housing and studio accommodation segment saw average occupancy remaining high at over 95% during the 1QFY2022.
As at March 31, the REIT has a weighted average lease expiry (WALE) of seven years.
ART’s gearing stood at 37.8% as at March 31, with a net asset value (NAV) per stapled security of $1.16.
Looking ahead, the trust says it expects to report stronger figures in 2022 as the world returns to normalcy.
Units in ART closed at $1.153 on April 28.
