Ascendas Reit posts 1.2% fall in DPU in Q1

The higher net property income in the first quarter was mainly due to contributions from two new acquisitions in Wickham Street, Brisbane, one of which is this office building, and the redeveloped 50 Kallang Way in Singapore.
The higher net property income in the first quarter was mainly due to contributions from two new acquisitions in Wickham Street, Brisbane, one of which is this office building, and the redeveloped 50 Kallang Way in Singapore.PHOTO: ASCENDAS REIT

Drop attributed to one-off distribution made last year

Ascendas Reit yesterday reported a drop in distribution per unit (DPU) for the first quarter.

DPU fell 1.2 per cent to 4.002 cents for the three months to June 30, from 4.049 cents for the same period a year ago.

This was due to a one-off distribution of $5.9 million made in the quarter last year, mainly for upfront fees for some credit facilities.

Excluding this factor, DPU would have expanded 4 per cent, while the amount available for distribution would have risen 4.1 per cent, the trust said.

The total amount available for distribution fell 1 per cent to $117.3 million. Net property income (NPI) was 3.8 per cent higher at $159.2 million, while gross revenue rose 1.5 per cent to $216.6 million.

The higher NPI was mainly due to contributions from two new acquisitions in Wickham Street, Brisbane, and the redeveloped 50 Kallang Avenue in Singapore.

  • AT A GLANCE

  • GROSS REVENUE: $216.6 million (+1.5%)

    NET PROPERTY INCOME: $159.2 million (+3.8%)

    DISTRIBUTION PER UNIT: 4.002 cents (-1.2%)

Retrospective downward revisions in the annual value of certain properties also reduced property tax expenses, contributing to the higher NPI.

The trust acquired two freehold logistics properties in Melbourne for A$50.2 million (S$50.6 million) in the quarter.

It plans to acquire 12 freehold logistics properties in Britain for £207.27 million (S$370.6 million) in the second quarter.They are in established distribution centres that are well connected to core urban areas.

The acquisition will allow Ascendas Reit to capitalise on growing demand from the booming e-commerce industry for supply chain and logistics services.

Ascendas units closed up three cents to $2.76 yesterday, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on July 31, 2018, with the headline 'Ascendas Reit posts 1.2% fall in DPU in Q1'. Print Edition | Subscribe