SINGAPORE (July 29): The manager of Ascendas Real Estate Investment Trust (Ascendas REIT) posted distribution per unit (DPU) of 4.005 cents for the 1Q19 ended June, marginally higher than DPU of 4.002 cents a year ago, despite an enlarged unit base.
Total amount available for distribution rose 6.3% to $124.7 million in 1Q19, from $117.3 million a year ago.
1Q19 gross revenue grew 6.1% to $229.7 million, from $216.6 million a year ago.
The increase was mainly due to contribution from newly acquired properties in the UK and Australia in FY18/19.
Ascendas REIT had a total of 171 properties under its portfolio as at June 30, compared to 132 properties a year ago.
Property operating expenses shrank 9.0% to $52.2 million during the quarter, from $57.4 million a year ago.
This was mainly due to the exclusion of land rent, which amounted to $8.2 million, following the adoption of a new accounting standard.
Consequently, net property income (NPI) rose 11.5% to $177.5 million in 1Q19, from $159.2 million a year ago.
Overall portfolio occupancy rate declined to 91.1% in 1Q19, compared to 91.9% in the previous quarter, mainly due to a lower portfolio occupancy rate in Australia.
About 9.0% of Ascendas Reit’s gross rental income will be due for renewal in the remaining two quarters of FY19. Of these expiring leases, 1.4% are from single-tenant buildings and 7.6% are from multi-tenant buildings.
As at end June, cash and cash equivalents stood at $54.5 million.
“Ascendas REIT’s stable performance in the first quarter of 2019 reflects the resilience of its large and diversified portfolio. This resilient performance was underpinned by proactive asset management as well as prudent diversification executed in the value-add strategy,” says William Tay, chief executive officer and executive director of the manager.
“We will continue to explore accretive investment opportunities in Singapore and other developed markets to grow and strengthen the portfolio,” he adds.
Units in Ascendas REIT closed 2 cents higher, or up 0.7%, at $3.05 on Monday.
