Published October 18, 2008
Ascendas-Reit Q2 net rises 14.8% to $53.3m on additional rental income
By EMILYN YAP

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ASCENDAS Real Estate Investment Trust (A-Reit) yesterday reported net distributable income of $53.3 million for its second quarter ended Sept 30, 2008. This is 14.8 per cent higher than a year ago.
Fuelled mainly by additional rental income from completed acquisitions and development projects, gross revenue rose 21.3 per cent year-on-year to $97.3 million.
Distributable income per unit (DPU) was 4.01 cents, up 14.2 per cent from the same period last year. Based on the six months to Sept 30, annualised DPU stands at 15.8 cents. This translates to an annualised yield of 8.4 per cent based on the $1.87 closing price of units on Sept 30.
The 'sustainable financial results' were achieved amid a 'turbulent global financial market and a slowing economy,' said A-Reit manager Ascendas Funds Management (S) chief executive Tan Ser Ping.
First-half gross revenue, net distributable income and DPU all increased from a year earlier.
With credit concerns growing in the market, A-Reit said that it remains committed to prudent capital management.
For instance, it has entered into fixed-rate hedging for 76.7 per cent of its debt for the next 3.93 years at a weighted average cost of 3.25 per cent. It is also getting a $1 billion medium term note programme ready in November to diversify funding sources.
For A-Reit's portfolio of 88 properties with a total book value of around $4.5 billion, the overall occupancy rate was 98 per cent at Sept 30.
As current average passing rents within the the portfolio remain lower than market spot rents, A-Reit expects to see positive rental reversion for most leases due for renewal in the rest of the financial year.
Barring any further deterioration in the external economic environment, the manager believes A-Reit is well-placed to deliver a DPU for the current financial year 'in line with its recent performance'.
A-Reit's unit price ended 16 cents lower at $1.51 yesterday.