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Ascendas Real Estate Investment Trust’s (Ascendas Reit) net property income for the fourth quarter of FY2017/2018 rose 2.5 percent year-on-year to $157.87 million.
Gross revenue increased 3.3 percent to $215.7 million, mainly due to “the acquisition of DNV/DSO in Singapore, 52 Fox Drive, Dandenong South in Melbourne, 100 Wickham Street and 108 Wickham Street in Brisbane”, revealed the trust.
Total amount available for distribution grew 2.4 percent to $114.5 million, while distribution per unit (DPU) climbed 1.5 percent to 3.91 cents.
For the full year, net property income and gross revenue rose three percent and 3.8 percent to $629.4 million and $862.1 million, respectively.
The total amount available for distribution increased 4.9 percent to $468 million, while DPU improved 1.6 percent to 15.99 cents.
Ascendas Reit registered a rental reversion of about 0.7 percent for renewed leases in multi-tenant buildings during the year. The Singapore portfolio posted a 0.5 percent rental reversion while the Australian asset achieved a 0.5 percent increase in rent.
Meanwhile, about 14 percent of Ascendas Reit’s gross revenue are due for renewal in FY2018/2019.
With this, its manager “has been proactively working on the renewal of the leases and marketing the vacant space to maximise returns from its portfolio,” said Ascendas Reit.
There are expectations of a gradual recovery in the industrial property market, on the back of the tapering of new supply and an improving economy.
But while leasing enquiries “have improved in recent months, businesses are still cautious and some are still consolidating and right-sizing”, it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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