Ascendas Reit’s gross revenue rose 2.7 percent year-on-year, an increase attributed to contributions from new acquisitions such as its Melbourne’s 52 Fox Drive Dandenong South property. (Photo: Ascendas Reit)
Ascendas Real Estate Investment Trust (Ascendas Reit) saw its distribution per unit for the first quarter 2017/2018 increase by 4.3 percent year-on-year to 4.049 cents, on the back of a 10.9 percent hike in income available for distribution.
Net property income climbed 2.6 percent year-on-year from S$149.5 million to S$153.4 million, while gross revenue rose 2.7 percent year-on-year to S$213.3 million.
The increase was attributed to contributions from new acquisitions, namely, 197-201 Coward Street in Sydney, 52 Fox Drive Dandenong South (formerly Stage 4 Power Park Estate) in Melbourne as well as 12, 14 and 16 Science Park Drive in Singapore, but partially offset by the loss of income from the decommissioning of 50 Kallang Avenue for asset enhancement works and the divestments of the properties in China.
Chia Nam Toon, chief executive officer and executive director of the trust’s manager, noted that while there was an improvement in portfolio occupancy and a slight positive rental reversion in Singapore, the city-state’s industrial property market continue to be soft amid the stiff competition for tenants.
“Potential new supply of industrial space for the remaining of 2017 is expected to put pressure on rental rates and occupancy.”
With this, he revealed that the trust will continually invest “in growth whilst reshaping our portfolio to enhance returns to unitholders”.
“This is evident through our recent acquisition in Melbourne, re-development and asset enhancement projects in Singapore, as well as divestment to recycle capital,” he added.
This article was edited by Denise Djong.