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10 Things to Know About Ascendas India Trust’s Latest Earnings

Ascendas India Trust (SGX: CY6U), which owns seven Information Technology (IT) parks across primary IT centres of India, announced its financial results for the third quarter ended 31 December 2017 yesterday. Here are 10 things investors should know from the earnings announcement:

1. Total property income rose 18% year-on-year to ₹2.2 billion. The increase in revenue was due to incremental rental income from aVance 4, BlueRidge 2 and Atria building, and positive rental reversions from the existing properties.

2. Net property income (NPI) grew 23% to ₹1.6 billion on the back of revenue growing at a faster rate than expenses.

3. Income available for distribution went up from ₹703 million a year ago to ₹812 million in the latest quarter. Meanwhile, income to be distributed was at ₹731 million, after retaining 10% of income available for distribution.

4. Consequently, distribution per unit (DPU) for the quarter increased from ₹0.68 to ₹0.79.

5. In Singapore dollar terms, total property income went up 18% to S$46.5 million, NPI increased 23% to S$32.6 million, income to be distributed grew 16% to S$17 million, while DPU rose 15% to 1.64 Singapore cents.

6. As at 31 December 2017, the trust had a net asset value of S$0.79, an improvement from the figure of S$0.71 seen at the end of 2016.

7. Ascendas India Trust had a gearing ratio of 31% as at the end of last year, with an effective weighted average cost of debt at 6.4% per annum.

8. 90% of the trust’s borrowings are on a fixed-interest rate basis, and 66% of total borrowings are hedged into Indian Rupees.

9. Ascendas India Trust’s committed portfolio occupancy was at a healthy 94%, as at 31 December 2017.

10. Sanjeev Dasgupta, chief executive of the trust’s trustee-manager, commented the following on the latest set of results:

“We are pleased to report a 15% growth in the Trust’s third quarter DPU compared to the same period last year. The acquisitions of BlueRidge 2 and aVance 4, completion of Atria building, and positive rental reversions contributed to the strong set of results. We also made progress in leasing out BlueRidge 2, which has attained leasing commitment of 72% to date. In Hyderabad, the buoyant commercial office market has provided a boost to our leasing activities as the newly completed Atria building has been fully leased to new and existing tenants.”

Ascendas India Trust is currently selling at S$1.14 per unit. This translates to a price-to-book ratio of 1.4 and a trailing distribution yield of 5.3%.

Meanwhile, we believe we’ve identified a dividend dynamo whose financials are strong enough to qualify its dividend as “safe” – and have profiled this stock in a research report that’s now available to download completely free of charge. Simply click here to claim your copy today!

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.