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These 3 REITs Have Delivered Growth In Their Latest Quarterly Earnings

The earnings season has more or less ended. There were some real estate investment trusts that managed to show growth while there were some that did not.

In here, let’s take a look at three REITs that had delivered a stronger performance in their latest earnings for the quarter ended 30 September 2016 (the REITs are presented in no particular order):

1. Ascott Residence Trust (SGX: A68U) is a REIT that focuses on serviced residences, rental houses, and other hospitality-related properties.

Its portfolio currently consists of 90 properties in 14 different countries that collectively have nearly 11,700 units. Ascott Residence Trust has total assets of S$4.9 billion at the moment.

During the reporting quarter, the trust’s revenue increased by 9%. Meanwhile, its distribution per unit (DPU) had climbed by 9.3% from 2.15 cents in the third quarter of 2015 to 2.35 cents.

Ascott Residence Trust also managed to enjoy a revenue per available unit (RevPAU) of S$144 per day, up 2% from a year ago. The average length of stay in the REIT’s properties had also increased from 3.5 months to 4 months over the same period.

Regarding its outlook, the trust expects demand for its properties to be resilient despite a weak global growth outlook.

2. Another REIT that has performed well is Frasers Commercial Trust (SGX: ND8U), which has ownership stakes in six commercial properties located in Singapore and Australia. Its portfolio in Singapore includes China Square Central and Alexandra Technopark.

Frasers Commercial Trust reported year-on-year increases of 6% and 4% in gross revenue and distribution income for unitholders, respectively. The two figures came in at S$39.3 million and S$19.49 million.

That said, the REIT’s portfolio occupancy rate had dipped slightly from 95.4% a year ago to 93.0%. The REIT also warned of a “weaker global economic environment and Singapore office market outlook,” but added that it will “continue to adopt proactive asset management and leasing initiatives” as a form of mitigation.

3. CapitaLand Commercial Trust (SGX: C61U) is the third REIT on the list that has turned in a good performance.

As a quick introduction, the REIT’s portfolio currently comprises 10 prime commercial properties. Some of these properties include Capital Tower, Six Battery Road, and One George Street. It also has a 17.7% stake in Quill Capita Trust in Malaysia.

The REIT delivered growth on many fronts. Gross revenue increased 8.9% and net property income (NPI) improved 8.3% year-on-year. The distribution per unit (DPU) came in 7.5% higher compared to a year ago. Meanwhile, the committed occupancy rate climbed from 96.4% a year ago to 97.4% and compares favourably to the market’s occupancy rate of 95.9%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.