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Ascendas Reit Q2 DPU falls 4.2%, gross revenue up 1.1%

ASCENDAS Reit on Thursday reported a 4.2 per cent fall in distribution per unit (DPU) to 3.887 Singapore cents for the second quarter ended Sept 30 from 4.059 cents last year.

Ascendas noted that the DPU takes into account an enlarged number of units in issue. The decline was otherwise due to lower contributions from Singapore assets, higher interest expense, and the raising of S$450 million in equity for a UK portfolio acquisition completed in early October as well as a built-to-suit development in Singapore.

Total amount available for distribution was 3.1 per cent lower at S$115 million, and net property income (NPI) shrank 1 per cent to S$158.9 million due to a one-off reversal of accrued operating expense in the previous year.

Gross revenue in Q2 improved 1.1 per cent to S$218.1 million on contributions from newly acquired properties in Australia and the UK.

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For the first half of the year, DPU was down 2.7 per cent to 7.889 Singapore cents, while total amount available for distribution also fell 2.1 per cent to S$232.3 million.

NPI improved 1.3 per cent to S$318.1 million, and gross revenue rose 1.3 per cent to S$434.7 million.

During the quarter under review, Ascendas Reit made its first UK acquisition, buying a portfolio of 12 logistics properties for S$373.2 million in August. It then acquired two Australian properties in September, 1-7 Wayne Goss Drive for S$30.8 million and Cargo Business Park for S$33.9 million.

It divested light industrial property at 41 Changi South Avenue 2 for S$13.6 million in August, in line with the Reit manager's asset management strategy to redeploy capital and optimise returns for unitholders.

Ascendas Reit declared a distribution of 0.639 Singapore cent per unit for the period of Sept 18 to Sept 30, to be paid out on Nov 27.

Units of the trust ended up two Singapore cents at S$2.58 on Thursday before results were announced.