Ascendas Reit announces 'healthy' operational performance in Q1 update

ASCENDAS Reit's manager announced in a business update that it delivered a "healthy" operational performance for its first quarter ended March 31.

Its overall portfolio occupancy rate improved to 91.7 per cent quarter on quarter, mainly attributable to a higher occupancy rate of 88.6 per cent in the Singapore portfolio on the back of higher demand for logistics space.

For its overseas portfolio, occupancies remained relatively stable at 97.3 per cent in Australia, 92.9 per cent in the US and 97.5 per cent in the UK. Overall, the portfolio achieved a positive rental reversion of 8 per cent for renewed leases in multi-tenant buildings in the first quarter.

As at March 31, the Reit's manager said that aggregate leverage was healthy at 36.2 per cent. Weighted average all-in cost of borrowing was maintained at 2.9 per cent and its debt-maturity profile remained "well-spread" with weighted average tenure of debt outstanding at 3.8 years.

In line with its support for tenants, the manager said that Ascendas Reit will be fully passing the benefit of any reduction in property tax granted by the government by way of a property tax rebate to its qualifying tenants.

With this property tax rebate and additional rental assistance, its retail and food and beverage (F&B) tenants within individual buildings and amenity centres will have their rents waived for April and May 2020. As the Covid-19 situation remains uncertain, the Reit manager said it will continue to engage its tenants and stands prepared to render additional support if the situation worsens.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

So far, none of Ascendas Reit's properties have been shut down due to Covid-19. Tenants in the essential industries continue to operate normally.

In Q1 this year, three Singapore properties - Wisma Gulab in MacPherson Road, 202 Kallang Bahru and 25 Changi South Street 1 - were divested for total sales proceeds of S$125.3 million.

Its total investment properties stood at S$12.8 billion, comprising 197 properties in four countries: Singapore accounts for 71 per cent of its total investment properties, Australia has 13 per cent, the US has 10 per cent, and the UK, 6 per cent.

In its outlook, the manager said that is proactively marketing the vacant spaces in Ascendas Reit's portfolio and engaging its customers digitally. It added that it will exercise greater prudence, manage costs and improve efficiency.