SINGAPORE (Oct 25): The trustee-manager of Ascendas India Trust (a-iTrust) has declared distribution per unit (DPU) of 2.81 cents for the 1H ended September, an increase of 3% from DPU of 2.73 cents a year ago.
Total property income grew 27% to $92.8 million in 1H17/18, from $73.2 million in the corresponding period last year.
This was mainly due to positive rental reversions as well as incremental rental income from Victor, BlueRidge 2, and aVance 4, which were completed or acquired in June 2016, February 2017, and April 2017, respectively.
Total property expenses rose 26% to $30.8 million, mainly due to additional expenses arising from the addition of new properties to the portfolio and a one-off settlement in 1Q17/18 with a tenant at Park Square, International Tech Park Bangalore as part of an on-going initiative to revamp and refresh the mall.
As a result, net property income increased by 27% to $62.0 million.
Finance costs rose 15% to $16.4 million mainly due to an increase in borrowing levels. Total loans increased due to additional loans taken to invest in BlueRidge 2, aVance 4 and the development of Atria.
Interest income fell 71% to $2.1 million, mainly due to lower interest income pertaining to BlueRidge 2 debentures, which was treated as inter-company income after acquisition, and hence, was eliminated on consolidation.
a-iTrust incurred a realised fair value loss on derivative financial instruments of $1.0 million in 1H17/18, compared to a gain of $92,000 a year ago.
Excluding BlueRidge 2 which has not achieved income stabilisation, a-iTrust says its committed portfolio occupancy remained healthy at 96% as at end September.
Meanwhile, its gearing ratio stands at 30%, which gives it an additional debt headroom of $426 million based on the current gearing limit of 45%.
As at end September, cash and cash equivalents stood at $72.9 million.
Looking ahead, the trustee-manager of a-iTrust says it is seeking opportunities to expand into the fast-growing logistics sector by acquiring investment-grade warehouses.
It adds that it will continue to focus on enhancing the competitiveness of its properties to distinguish itself from competitors, while maintaining financial discipline, and seeking growth opportunities.
Units of Ascendas India Trust closed 1.5 cents higher at $1.145 on Wednesday.
