Published January 30, 2009

Ascendas India Trust DPU rises 35% in Q3

By UMA SHANKARI

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ASCENDAS India Trust (a-iTrust) said yesterday that distributable income for its third quarter ended Dec 31, 2008 rose 36 per cent to $15.3 million, from $11.3 million a year earlier.

Popular: Ascendas' flagship Indian project, the International Tech Park Bangalore

Distribution per unit (DPU) for Q3 rose 35 per cent to 2.02 cents. Distribution is semi-annual, so the Q3 distribution will be made with that of Q4. Including 3.47 cents already distributed for first-half FY 2008/09, the nine-month DPU comes to 5.49 cents.

Total property income for Q3 was $28.8 million - 7 per cent higher than the $27 million figure the previous year - while net property income grew 9 per cent to $17 million, from $15.7 million

Property income grew on the back of higher occupancy and resilient rental rates. Expenses grew at a slower pace mainly due to the fall in oil prices. As a result, net property income rose.

'Notwithstanding current weak global economic conditions, a-iTrust's portfolio occupancy edged up to 99 per cent from an already high level,' said Jonathan Yap, chief executive of the trust's manager. 'Average portfolio rentals also improved since our last results announcement. These results demonstrate the portfolio's resilience and appropriateness of its positioning vis-a-vis the target customers.'

a-iTrust's portfolio comprises 4.8 million square feet of completed space in the key Indian cities of Bangalore, Chennai and Hyderabad. About 1.2 million sq ft of this space - or a quarter of a-iTrust's current income-producing space - was renewed or leased in the nine months ended Dec 31, resulting in a higher average portfolio rental. The real estate investment trust (Reit) aims to renew or replace expiring leases in advance, it said.

'Looking forward, less than 6 per cent of space is due for renewal in the current financial year, and less than 13 per cent in the next year,' a-iTrust said. 'The leases, with locked-in terms and expiries stretching beyond 2014, will also enable the trust to enjoy income stability.'

Barring unforeseen circumstances, a-iTrust is confident of meeting the FY 2008/09 DPU forecast of 6.85 cents stated in its 2007 listing prospectus.

The trust's shares closed unchanged at 50 cents yesterday.