Ascendas India Trust posts 25% growth in 3Q DPU to 2.05 cents

SINGAPORE (Jan 24): The trustee-manager of Ascendas India Trust (a-iTrust) has declared distribution per unit (DPU) of 2.05 cents for the 3Q18/19 ended December, 25% higher than a year ago.

The increase came despite an enlarged equity base of 97.4 million units through the private placement in February 2018.

Income available for distribution for 3Q18/19 increased by 39% in SGD terms to $23.6 million, mainly due to increased net property income and higher interest income from investments.

Total property income fell 3% in SGD terms to $44.9 million, but total property expenses fell 21% to $11.1 million on lower utilities expenses. Consequently, 3Q18/19 net property income grew by 4% to $33.9 million.

This was mainly due to incremental income from BlueRidge 2, income from Atria at The V and Arshiya Warehouses, as well as positive rental reversions.

As at end December, committed portfolio occupancy was 98%, while weighted average lease term and weighted average lease expiry stood at 6.6 years and 4.3 years, respectively.

Cash and cash equivalents stood at $99.1 million as at end December.

“We are pleased to report a healthy year-on-year growth of 25% in the Trust’s third quarter DPU in Singapore Dollar terms, supported by income contributions from interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding,” says Sanjeev Dasgupta, chief executive officer of the trustee-manager.

“There was also a one-off tax benefit from the merger of the legal entities of The V and BlueRidge 2, which contributed to the DPU growth,” he adds.

Looking ahead, a-iTrust has received in-principle approval to redevelop the park at The V. Construction of Phase 1 will commence upon receiving final approval of the building permit, and expected to complete 2H21.

In Bangalore, construction of a new 0.5 million sf building is underway, and is expected to complete by 1H19.

A second building with total floor area of 0.7 million sf will commence construction in 1Q19 and is expected to complete by 2H20.

a-iTrust says both buildings have been 100% pre-leased to a leading IT Services company.

Units in Ascendas India Trust closed 1 cent higher at $1.08 on Thursday.