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Higher Distribution at Ascendas REIT

a-reit logoAscendas Real Estate Investment Trust (SGX: A17U), or A-REIT, saw its gross revenue for the second-quarter go up by 5.8% to S$152.7m. The year-on-year increase was on the back of “recognition of rental income earned from The Galen, which was acquired at the end of FY12/13 and finance lease interest income received from a tenant.”

The net property income increased by 4.1% over last year to S$107m and the amount available for distribution increased by 9.3% year-on-year to S$86.4 million. The distribution per unit (DPU) went up from 3.53 cents to 3.60 cents.

As of 30 September 2013, A-REIT’s gearing ratio stands at 29.7%. The weighted term of debt is 3.5 years with a weighted average all-in borrowing cost of 2.74%.

Occupancy rate for the portfolio and multi-tenanted buildings was 90.1% and 83.9%. The leases in the portfolio are of “long and short term leases (31% and 69% by property value respectively) with a weighted average lease to expiry of about 3.9 years.”

In July 2013, A-REIT acquired A-REIT City@Jinqiao for S$124.6 million. On 5 September 2013, A-REIT achieved Temporary Occupancy Permit for the development of Nexus@one-north.

The Chief Executive Officer and Executive Director of the Manger of A-REIT, Tan Ser Ping, said that A-REIT’s trend of its portfolio continuing to achieve positive rental revision is expected to continue for the remainder of the financial year, although at a moderate rate.

A-REIT closed at $2.31 on Wednesday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.