We’ve come to the tail-end of the earnings season.
As is common with every earnings season, there will be some companies and real estate investment trusts (REITs) posting growth, some posting mixed numbers, and some experiencing declines.
So, which are the businesses that have recently posted mixed results? Here are two of them:
Ascott Residence Trust (SGX: A68U) is the first on the list of mixed bags.
As a quick introduction, Ascott is a REIT focusing on hospitality assets. The REIT’s portfolio currently consists of 73 properties with 11,417 units in 38 cities across 14 countries in the Americas, Asia Pacific and Europe. Its sponsor is property giant, CapitaLand Limited (SGX: C31).
Overall, revenue and gross profit were up year-on-year due to additional revenue from Sheraton Tribeca New York Hotel, Citadines City Centre Frankfurt and Citadines Michel Hamburg. Moreover, revenue per available unit (RevPau), a metric used by the hospitality sector to measure the average amount of revenue a serviced residence makes per room, went up from S$142 in the second quarter of 2016 to S$146 in the latest quarter, a rise of 3%.
Despite all the positive, however, distribution per unit came down by 14%, mainly due to one-off items, the effects of the rights issue and equity placement.
As for its outlook, this is what the REIT had to say:
“Going forward, Ascott REIT will continue to focus on creating stable income and returns to Unitholders through its diversified portfolio and extended-stay business model, together with the master leases and management contracts with minimum guaranteed income.”
For more information about the latest results, please click here for the article written by my colleague, Sudhan.
SIA Engineering Company Ltd (SGX: S59) is the next company that had reported mixed performance recently.
As a quick introduction, SIA Engineering Company or SIAEC, specializes in aircraft maintenance, repair, and overhaul (MRO) services to over 80 international airlines around the world. It’s also one of the subsidiaries of Singapore Airlines Ltd (SGX: C6L)
Overall, revenue was up 0.4% year-on-year to S$272.8 million but net profit was down by 81.8% to $36.2 million, resulting in a plunge in earnings per share from 17.67 cents to 3.24 cents. Excluding the impact of the divestment in the first quarter of FY16/17, adjusted profit of $36.2 million for the current quarter would be 4.7% lower.
On the other hand, SIAEC continued to maintain a strong balance sheet with S$628.7 million in cash and equivalents and borrowings of about S$27.2 million.
For more information about the latest result, please click here for the article written by my colleague, Sudhan.
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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.