Ascott Residential Trust's profits up 6% to $252.6m in 2019

A change in leasing standards boosted profits in Q4.

Ascott Residential Trust (ART) recorded a 6% growth in gross profit at $252.6m in 2019, the company announced. Over the same period, revenue remained flat at $514.9m.

In Q4, gross profit climbed 3% YoY to $65.3m whilst revenue dipped 2% to $134.1m. The revenue was dragged down by a $2.5m decline in contributions from divesting Ascott Raffles Place Singapore and Somerset West Lake Hanoi.

Also read: Ascott REIT's profits up 1% to $65.05m in Q3

However, the trust saw a rise in profits for the quarter from adopting a new leasing standard, namely FRS 116 Leases, starting January 2019

ART's daily revenue per available unit (RevPAU) declined 2% to $160 from weaker exchange rate in Q4. However, it edged up 1% to $152 for the full year.

Its distribution per stapled security (DPS) also rose 6% YoY to $0.0227 in Q4, as the unitholders’ distribution expanded 6% to $49.3m. DPS for the full year remained virtually unchanged at 6.4 cents.