AREIT – BT

A-Reit’s distributable net income up in Q1

DPU of 3.37 cents, up 9.1%; net propery income climbs 15.8%

ASCENDAS Real Estate Investment Trust (A-Reit) has reported net income available for distribution of $44.7 million for its first quarter ended June 30, a 12.8 per cent year-on-year increase.It also said it will pay a distribution per unit (DPU) of 3.37 cents for the quarter on Aug 29, 9.1 per cent higher than for the previous corresponding quarter.

This also represents an annualised yield of 4.6 per cent based on the closing price of $2.94 per unit on June 29.

Reit manager Ascendas-MGM Funds Management’s CEO Tan Ser Ping said: ‘We are pleased to commence the new financial year with a sound first-quarter performance. On the back of the good economic performance and positive rental reversion from the existing portfolio, we achieved a commendable 15.8 per cent growth on our net property income compared to the prior corresponding period.’

Net property income for the quarter was $58 million.

New leases and expansion by existing tenants in A-Reit’s portfolio record a 57 per cent increase from a year ago resulting in an occupancy rate of 97.2 per cent, up from 96.1 per cent. Recent acquisitions include 1 Senoko Avenue for $11.2 million.

A-Reit is also undertaking the development of two projects: a partial build-to-suit business park property – HansaPoint @ CBP – at Changi Business Park and a partial build-to-suit distribution facility which is currently under development at Changi LogisPark.

An additional five-storey ramp-up warehouse is being added to Senkee Logistics Hub and it will be acquired for $63.8 million by A-Reit upon satisfaction of certain conditions.

A-Reit is also expected to acquire a logistic and distribution facility, currently being built by Goldin Enterprises Pte Ltd at Pioneer Walk for $22.5 million in the first half of 2008.

The Reit manager has renewed or leased a total of 82,763 sq m of space in the quarter. These leases represent an annualised rental income of $19.1 million. Total new leases for the period were 32,827 sq m, of which 44.4 per cent was in business and science parks, 13.7 per cent in hi-tech industrial properties and the remaining 41.9 per cent in two other asset classes – light industrial & flatted factories and logistics & distribution centres.