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The distributable income of Ascendas Real Estate Investment Trust (Ascendas Reit) rose by 5.6 percent year-on-year to $118.8 million in the quarter ended 30 September (Q2 FY17/18), revealed an SGX filing on Monday (30 October).
At the same time, net property income increased by 5.3 percent to $160.5 million, while gross revenue grew 5.1 percent to $215.8 million.
The earnings growth is primarily due to contributions from newly acquired properties in 2016, namely 12, 14 and 16 Science Park Drive in Singapore, Sydney’s 197-201 Coward Street and 52 Fox Drive Dandenong South in Melbourne. But this was partially offset by the sale of A-REIT City @ Jinqiao.
Consequently, Ascendas Reit’s distribution per unit (DPU) edged up by 1.1 percent to about $4.06 compared to approximately $4.02 in Q2 FY16/17.
As of 30 September 2017, the trust had a total of around 1,370 tenants spread across 30 properties in Australia and 101 real estates in Singapore.
By asset value, the former accounted for 15 percent of its portfolio, while the latter made up 85 percent. In particular, 25.1 percent consist of single-tenant facilities, while 74.9 percent comprised multi-tenant properties.
Overall, these assets have a weighted average lease expiry of about 4.2 years and their combined occupancy level has improved from 89.1 percent in 30 September 2016 and 91.6 percent in 30 June 2017.
“It was an eventful quarter. Operationally, Ascendas Reit achieved higher portfolio occupancy of 92 percent and a positive rental reversion of 3.1 percent. In Australia, further inroads were made with the acquisition of No. 100 Wickham Street, a suburban office property in Brisbane,” said Manohar Khiatani, non-executive Director on the Board of Ascendas Funds Management (S) Limited.
Specifically, the occupancy rate of its properties here rose from 89.2 percent on 30 June 2017 to 90.1 percent in the quarter under review thanks to higher occupancies at LogisTech, 40 Penjuru Lane and 2 Senoko South Road.
While the occupancy level at its Australian assets slid from 99.8 percent to 98.7 percent because of non-renewal at 1A & 1B Raffles Glade in Sydney, a new lease has been signed for the premises effectively starting in Q3 FY17/18.
This article was edited by Keshia Faculin.
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