Ascendas Reit's Q3 DPU rose 9.9 per cent to 3.946 cents

SINGAPORE - Ascendas Real Estate Investment Trust (A-Reit) posted higher distributable income for the third quarter due to new properties acquired in Australia and Singapore.

Distributable income for the three months ended Dec 31 last year grew 11.7 per cent to S$96.6 million compared with S$86.4 million in the same period a year earlier.

Distribution per unit (DPU) increased 9.9 per cent to 3.946 cents.

"In the third quarter, we announced acquisitions worth approximately S$1.5 billion in Australia and Singapore," Mr Tan Ser Ping, chief executive and executive director of the Reit manager.

"The acquisitions comprising 27 freehold logistics facilities in Australia and a business park property in Singapore are aligned with our strategy to build a high quality and diversified portfolio to deliver sustainable returns for our unitholders," he said.

Gross revenue for the quarter increased by 12.9 per cent to S$193.8 million, while net property income jumped 24.1 per cent to S$142.2 million.

Occupancy rates for the overall portfolio was 89.2 per cent as at end December last year.

The Reit also saw positive rental reversion across all segments of its Singapore portfolio.

The industrial property market conditions in Singapore are expected to remain challenging, said the Reit manager in a press release on Friday (Jan 22).

"With significant new supply and tepid economic growth both in Singapore and globally, there may be pressure on occupancy growth in Singapore," it added.

The recent acquisition of more than A$1 billion of properties has enabled A-Reit to gain a strategic footprint in the logistics market in Australia.

The Reit manager said that demand for logistics space is expected to be strong, backed by a healthy jobs market, low interest rates, lower Australian dollar and firm consumer spending.

A-Reit units closed four cents, or 1.88 per cent, higher at $2.17 on Friday ahead of its results announcement.