Ascendas Reit's Q3 FY2017/2018 DPU edges down 0.6 per cent to 3.97 Singapore cents

ASCENDAS Real Estate Investment Trust (Reit) posted a 0.6 per cent year-on-year dip in distribution per unit (DPU) to 3.97 Singapore cents for the third quarter of FY2017/2018.

This was mainly due to a one-off property tax refund in the prior year and an increase in the number of units in issue.

Gross revenue rose 4.1 per cent to S$217.3 million for the period under review, while net property income (NPI) was up 1.7 per cent to S$157.6 million. The increase in NPI was on the back of contributions from newly acquired properties such as 12, 14 and 16 Science Park Drive in Singapore and 100 Wickham Street in Australia, as well as a recently redeveloped property, 50 Kallang Avenue in Singapore.

Meanwhile, total amount available for distribution edged up one per cent to S$116.3 million.

Overall portfolio occupancy rate improved from 90.2 per cent a year ago to 91.1 per cent in the quarter under review. However, it declined from the 92 per cent seen in the quarter ended Sept 30, 2017.

Rental reversion of about 3.1 per cent was achieved for renewed leases in multi-tenant buildings during Q3 FY2017/2018. The Singapore portfolio achieved positive rental reversion of 5.8 per cent while one lease in Australia was renewed at one per cent lower than the preceding average gross rent.

Separately, it was also announced that William Tay Wee Leong will be appointed as executive director and chief executive of Ascendas Funds Management, the manager of Ascendas Reit, from Feb 1. Mr Tay is currently deputy CEO of Singapore and South-east Asia of the Ascendas Singbridge Group (ASB). Mr Tay is concurrently CEO (South Korea) of ASB, overseeing its real estate private equity funds business and investments in South Korea.