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9 Quick Things Investors Should Know About Ascendas Real Estate Investment Trust’s Latest Earnings

In late January, Ascendas Real Estate Investment Trust (SGX: A17U) released its third quarter earnings report for the financial year ending 31 March 2018 (FY17/18).

As a quick introduction, Ascendas REIT houses properties which are used for either commercial or industrial purposes, or both. As of 31 December 2017, Ascendas REIT had 101 properties in Singapore and 31 properties in Australia.

Here are nine things investors should know about Ascendas REIT’s latest results:

1. Gross revenue for the reporting quarter grew 4.1% to S$217.3 million while net property income improved by 1.7% to S$157.6 million.

2. Unfortunately, the REIT’s distribution per unit (DPU) declined 0.6% year-on-year to 3.97 cents.

3. Based on Ascendas REIT’s annualized DPU of 16.104 cents (calculated using its year-to-date DPU of 12.078 cents), and its closing unit price of S$2.60 as of 8th February 2018, the REIT has a trailing distribution yield of 6.2%.

4. As of 31 December 2017, the REIT’s aggregate leverage stood at 35.2%, which is a safe distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had an occupancy rate of 91.1% at end-2017.

6. The weighted average lease expiry (by gross revenue) was at 4.2 years, as of 31 December 2017.

7. Ascendas has about 1,350 tenants as at 31 December 2017, of which the top 10 tenants accounted for 20.6% of portfolio committed rental income.

8. Rental reversion for multi-tenant building was positive 3.1% in the latest quarter.

9. The REIT also provided the following  outlook:

Source: Ascendas REIT Presentation


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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 Lawrence Nga doesn’t own shares in any companies mentioned.