Ascendas Reit's Q4 and full-year DPU up on acquisitions

Contributions from a recently bought building in Brisbane helped lift fourth-quarter results at Ascendas Reit, it reported yesterday.

Distribution per unit (DPU) came in at 3.91 cents for three three months to March 31, up a tad from the 3.852 cents it paid out a year ago.

Gross revenue rose 3.3 per cent to $215.7 million, while net property income advanced 2.5 per cent to $157.9 million as returns from the acquisition of 108 Wickham Street in Brisbane last December kicked in.

This was partly offset by the divestment of 84 Genting Lane in Singapore in January this year.

Notably, the trust recorded a foreign exchange loss of $29.9 million in the quarter, mainly from the maturity of certain cross currency interest rate swaps that matured in the quarter. A year earlier, it reaped a $26 million foreign exchange gain.

It also saw a net change in fair value of financial derivatives of $47.2 million, a reversal from a net loss of $34.3 million a year earlier. The latest figure comprised a $40.5 million fair value gain on cross currency swaps and a $6.4 million fair value gain on interest rates swaps.

  • AT A GLANCE

  • Gross revenue:

    $215.7 million (+3.3%)

  • Net property income:

    $157.9 million (+2.5%)

  • Distribution per unit:

    3.91 cents (+1.5%)

The trust reported a DPU of 15.988 cents for the full year, up from 15.743 cents in 2017, despite the increase in number of units in issue.

Gross revenue rose 3.8 per cent to $862.1 million and net property income advanced 3 per cent to $629.4 million, due to full-year contributions from properties acquired such as 12, 14 and 16 Science Park Drive in Singapore, as well as 197-201 Coward Street and 100 Wickham Street in Australia.

There were also rental increases of about 0.7 per cent for renewed leases in multi-tenant buildings in the year. The Singapore portfolio achieved rent increases of 0.5 per cent while the Australian assets lifted rent by 1.8 per cent.

The trust added that there are market expectations of a gradual recovery in the Singapore industrial property market on the back of an improving economy and the tapering off of new industrial property supply.

"Although leasing enquiries have improved in recent months, businesses are still cautious and some are still consolidating and right-sizing."

The units closed unchanged at $2.71 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 24, 2018, with the headline 'Ascendas Reit's Q4 and full-year DPU up on acquisitions'. Print Edition | Subscribe