The manager of Ascendas REIT (A-REIT) has reported portfolio occupancy of 91.9% for the 3QFY2020 ended Sept 30 with a weighted average lease expiry (WALE) of 3.9 years.
The REIT also reported portfolio rental reversion of -2.3% (compared to 4.3% in the previous quarter) and a healthy aggregate leverage of 34.9% (1.2 percentage points down from the 36.1% in 2QFY2020).
During the quarter, A-REIT completed its acquisition of 254 Wellington Road in Melbourne, Australia.
See: Ascendas REIT completes acquisition of Australian suburban office for A$105.8 mil
It has also undertaken proposed acquisitions at Lot 7, Kiora Crescent in Sydney, as well as MQX4 Macquarie Park in Sydney. Both acquisitions are estimated to be completed by 2Q2021 and mid-2022 respectively.
A-REIT also completed two asset enhancement initiatives (AEIs) in Singapore and Australia that were completed in July and September 2020 respectively.
In September, A-REIT also issued $300 million in non-call five green perpetual securities at 3.00%.
See also: Ascendas REIT prices $300 mil green perpetual securities, first in Asia
During the quarter, the REIT said it “maintained high level of natural hedge” for its portfolios in Australia (76%), UK (100%) and US (100%). This was done to “minimise the effects of adverse exchange rate fluctuations”.
The REIT did not release its figures for gross revenue, net property income or distributable income for 3QFY2021.
In its outlook statement, A-REIT says it expects a “challenging” economic outlook, which could affect its performance.
“The Manager will continue to work closely with its tenants through these difficult times and keep a close eye on the changing situation so that we will be able to respond accordingly to protect Unitholders’ interests. Ascendas Reit’s well-diversified portfolio and tenant base should help us to mitigate the challenges ahead,” it says.
Units in A-REIT closed 5 cents lower, or 1.6% down at $3.03 on Oct 26.
