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Ascendas India Trust (a-iTrust) has recorded a two percent increase in property income to S$30.6 million in the third quarter ended 31 December 2011, boosted by rental income from its new buildings.
“The growth in total property income was curtailed by unfavourable currency translation, as the Singapore Dollar appreciated by 16 percent against the Indian Rupee over the same period,” it said in a statement.
However, in Indian Rupee terms, property income increased 19 percent to 1.225 billion rupees, driven by income contributions from three new buildings.
Meanwhile, distributable income for the quarter declined 12 percent year-on-year to S$11.6 million, primarily attributed to the weakening of the Indian Rupee against the Singapore Dollar and the additional interest expense associated with the construction of the new buildings.
In addition, leasing momentum remained strong, as the trust continued to attract quality tenants to its properties. Around 1.4 million sq ft of total floor space was leased or renewed in the nine months leading to 31 December 2011, exceeding the floor space freed-up by expired or pre-terminated leases. Tenant retention also remained healthy at 79 percent over the same period, and 0.8 million sq ft of space was leased in three new buildings.
“We are pleased with the resilient performance of our properties amidst the global economic volatility, having achieved third quarter revenue and income growth of 19 percent in Indian Rupee terms over the previous year. This bears testament to the quality of our assets, wide portfolio diversity and robust capital structure,” commented Jonathan Yap, Chief Executive of the Trustee-Manager.
Looking forward, he noted that the trust is encouraged by the healthy demand for its new buildings, “as we expect their income contribution to continue to rise in the coming quarters as more units are handed over to tenants.”
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