SINGAPORE (July 27): The manager of Ascendas REIT (AREIT) has declared a 1QFY17/18 DPU of 4.049 cents, a 4.3% increase from 3.88 cents the same time last year.
First quarter gross revenue rose 2.7% to $213.3 million, mainly attributable to newly acquired properties in Singapore and Australia.
The increase was a result of contributions from new acquisitions – 12, 14 and 16 Science Park Drive in Singapore, 197-201 Coward Street in Sydney and 52 Fox Drive Dandenong South (formerly Stage 4 Power Park Estate) in Melbourne – partially offset by the loss of income from the divestments of the properties in China and the decommissioning of 50 Kallang Avenue for asset enhancement works.
Net property income rose by 2.6% to $153.4 million from $149.5 million.
The total amount available for distribution also grew 10.9% to $118.5 million, from $106.9% last year.
Net finance costs were 32.6% lower in 1QFY17/18 at $24.80 million, compared to $36.78 the previous year. This was due to a loss on fair value of ECS amounting to $10.4 million that was included in 1QFY16/17 but not in 1QFY17/18, as well as lower net interest expense arising from the lower average debt balance during the quarter.
Chia Nam Toon, CEO of the manager Ascendas Funds Management, says, “We are continually investing in growth whilst reshaping our portfolio to enhance returns to Unitholders. This is evident through our recent acquisition in Melbourne, re-development and asset enhancement projects in Singapore, as well as divestment to recycle capital.”
Looking ahead, AREIT’s manager will actively evaluate the third party market in Singapore for high-quality accretive investments, despite facing some headwinds. However, although the global economy has improved, uncertainties still remain.
Units in AREIT closed 1 cent higher at $2.72 on Thursday.
