SINGAPORE (Oct 30): The manager of Ascendas Real Estate Investment Trust (Ascendas REIT) has announced distribution per unit (DPU) of 8.108 cents for the 1H ended September, 2.7% higher than DPU of 7.898 cents a year ago.
Net property income grew 4.0% to $313.9 million in 1H17/18, on the back of a 3.9% increase in gross revenue to $429.1 million.
The increase was mainly attributable to contributions from the acquisition of 197-201 Coward Street in Sydney; 52 Fox Drive, Dandenong South in Melbourne; and DNV/DSO in Singapore. This was partially offset by the divestment of Ascendas Z-Link and A-REIT City @ Jinqiao as well as the decommissioning of 50 Kallang Avenue for asset enhancement works.
As at end September, overall portfolio occupancy rate improved to 92.0%, compared to 89.1% a year ago.
Ascendas REIT’s portfolio comprises 25.1% of single-tenant and 74.9% of multi-tenant properties by property value. The portfolio has a weighted average lease expiry (WALE) of about 4.2 years.
Positive rent reversion of about 3.1% was achieved for renewed leases in multi-tenant buildings during 2Q FY17/18.
Aggregate leverage stood at 33.1% as at Sept 30, 2017.
As at end September, cash and cash equivalents stood at a deficit of $13.8 million, including a bank overdraft amounting to $38.7 million.
Looking ahead, the manager of Ascendas REIT says performance for FY17/18 is expected to remain stable amid uncertainties that remain despite an improved outlook for the global economy.
“In Australia, further inroads were made with the acquisition of No. 100 Wickham Street, a suburban office property in Brisbane. Although the business environment remains challenging, we will continue to seek opportunities to expand and improve on our performance,” says Manohar Khiatani, non-executive director of the manager.
Units of Ascendas REIT closed 2 cents lower at $2.71 on Monday.
