a-iTrust – BT

a-iTrust posts 25% rise in Q4 DPU

ASCENDAS India Trust (a-iTrust) said yesterday that distributable income for its fourth quarter ended March 31 rose 26 per cent to $15.6 million from a year back.

Distribution per unit (DPU) for the quarter rose 25 per cent to 2.05 cents, bringing the full year’s DPU to 7.54 cents.

The 24 per cent rise in full-year DPU was ‘driven by strong performance of the assets’ and exceeded the DPU forecast of 6.85 cents stated in its 2007 listing prospectus. Distribution is semi-annual, so the DPU for Q3 and Q4, which amounts to 4.07 cents, will be payable on May 26.

Total property income for the fourth quarter rose 13 per cent to $30.8 million from the year-ago Q4, while net property income grew 8 per cent to $17.4 million. For the full year, total property income grew 15 per cent to $118.1 million, from $102.7 million in the previous year, while net property income rose 9 per cent to $66.2 million.

Net asset value attributable to unitholders was 89 cents per unit as at March 31.

Jonathan Yap, chief executive of the trust’s manager, said: ‘Our results reflect the strong cash generation of our assets and robust demand for space in our properties.’

a-iTrust has a portfolio of 4.8 million square feet of completed space in Bangalore, Chennai and Hyderabad. The occupancy rate for its portfolio was 98 per cent at the close of the fourth quarter, above market occupancy rates of 72 per cent to 87 per cent in the three cities, the trust said.

During the year, leases for 24 per cent of the portfolio’s space expired, out of which 89 per cent was renewed. The trust manager said that it intends to ‘renew or replace expiring leases in advance’. About 13 per cent of space is due for renewal in the next year.

‘Apart from organic growth, we are developing buildings on land owned by the trust, to give us new income stream,’ said Mr Yap.

These include plans to develop 1.5 million square feet of space in international tech parks in Bangalore and Chennai. The trust also owns 2.7 million sq ft of space which is largely within an approved special economic zone in the Bangalore tech park, which can potentially be further developed.

As at March 31, a-iTrust’s total borrowings of $79 million reflected a gearing level of 9 per cent.

The trust’s shares closed 0.5 cent down at 50.5 cents yesterday.