Ascendas Reit posts 12.3% drop in Q3 DPU to 3.507 S cents

ASCENDAS Reit's distribution per unit (DPU) for the third quarter of FY2019 fell 12.3 per cent year-on-year to 3.507 Singapore cents.

This was due to an enlarged number of units in issue after a rights exercise in December last year.

Gross revenue for the quarter under review rose 5.9 per cent from a year ago to S$239.73 million, bolstered by contributions from 28 properties in the US and two properties in Singapore, acquired in December last year.

Net property income increased 8.5 per cent to S$182.28 million, owing to the effects of adopting accounting standard FRS 116. Land rent expenses of S$8.2 million were recorded in Q3FY18/19 but none were recorded in Q3FY19.

Amount available for distribution edged up 2.1 per cent to S$126.93 million, in line with the increase in net property income. The DPU for the three months ended Dec 31, 2019 will be paid on March 4.

William Tay, chief executive of the Reit's manager, said: "We will continue to invest in well-located properties that benefit from structural growth trends such as technology and e-commerce, and strengthen Ascendas Reit's presence across its four developed markets to optimise portfolio returns." Ascendas Reit units closed three cents higher at S$3.15 on Friday.