a-iTrust – BT

Ascendas India Trust Q1 DPU down 10%

ASCENDAS India Trust (a-iTrust) yesterday posted a 10 per cent year-on-year decline in distribution per unit (DPU) from 1.66 cents to 1.50 cents for the fiscal first quarter ended June 30 – an annualised yield of about 6.4 per cent, based on yesterday’s closing unit price of 96 cents.

The decrease was attributable to the effect of a stronger Sing dollar and additional financing costs for newly completed buildings. Three buildings were recently completed and the construction financing costs were recognised in the income statement upon completion.

Although income contribution from new buildings and higher recovery of utilities cost pushed total property income up one per cent year-on-year (from $30.89 million to $31.22 million), total property expenses increased 14 per cent year-on-year from $11.95 million to $13.66 million, due to an increase in a-iTrust’s portfolio as well as higher electricity tariff and cost of fuel.

Consequently, net property income was down 7 per cent from $18.94 million in the same period the previous year to $17.56 million. But in Indian rupee terms, net property income was 2 per cent higher. The trust expects additional property expenses to be progressively compensated by higher property income in the immediate future.

Gearing at the end of the first quarter was 22 per cent. This level gives a-iTrust the flexibility to fund growth via development or acquisition using debt or equity.

a-iTrust’s portfolio of 6.4 million square feet – including Zenith, Park Square & Voyager – of completed space is fairly evenly distributed among Bangalore, Chennai and Hyderabad. Occupancy for its portfolio – excluding Zenith, Park Square & Voyager – as at June 30 was 96 per cent.

Tenant demand at its latest three developments was also strong. As at July 27, the tenancy commitment rates for Park Square, Voyager and Zenith were 76 per cent, 68 per cent and 74 per cent respectively. ‘In light of the reassuring demand for our new space, we are already in the midst of planning the development of another multi-tenanted IT SEZ building of approximately 540,000 sq ft in Bangalore’s International Tech Park,’ said Ascendas Property Fund Trustee Pte Ltd CEO Jonathan Yap.