Ascendas India Trust (a-iTrust) posted strong third-quarter results due to more income from a recently acquired information technology (IT) park and a new office building.
Distribution per unit (DPU) for the quarter rose 5 per cent to 1.42 Singapore cents.
Net property income for the three months that ended Dec 31 grew by 7 per cent, compared with the same period last year, to reach $26.4 million. In rupee terms, it grew 9 per cent to hit 1.27 billion rupees.
The company, which manages IT parks in India, attributed the lift to CyberVale 3 in Chennai and Victor, a newly completed building in the International Tech Park Bangalore.
Cybervale 3 was acquired in March last year, while Victor was completed in June.
The results were offset by the appreciation of the Singapore dollar by 2 per cent against the Indian rupee for the quarter.
Net asset value per unit as at Dec 31 was 71 Singapore cents, compared with 69 cents as at March 31.
AT A GLANCE
NET PROPERTY INCOME:
$26.4 million (+7%)
$14.7 million (+5%)
DISTRIBUTION PER UNIT:
1.42 cents (+5%)
The business trust, which owns space in six IT parks in India, has its earnings denominated in rupees.
Third-quarter income available for distribution rose 5 per cent to $14.7 million, driven mainly by higher net property income.
The company said 10 per cent of the income available for distribution was retained to give the trust greater flexibility to grow. The trust has its operating buildings in three cities. It has 42 per cent of its portfolio in Bangalore, 29 per cent in Chennai and 29 per cent in Hyderabad.
The trust noted in a statement to the Singapore Exchange yesterday that a report by JLL said vacancy rates increased in the third quarter in Bangalore.
However, the trust's International Tech Park Bangalore, which is in the micro-market of Whitefield, saw vacancy rates decrease. The trust said it expects rental values in Whitefield to increase this year.
The trust, whose portfolio occupancy stood at 97 per cent as at Dec 31, has a number of projects in the pipeline. It is developing a 408,000 sq ft building in Hyderabad to cater to expansion demand from existing tenants.
It also invested $22 million in July last year and $2 million in December in a fourth building at its aVance business hub in Hyderabad.
This year, it will enter the Pune market with the purchase of a 1.5 million sq ft property, BlueRidge 2.
The results were posted after the market closed.
a-iTrust units closed down 3.5 cents at $1.05 yesterday.