Wednesday, July 18, 2012

A-Reit off to a flyer in Q1

Business Times: Wed, Jul 18

ASCENDAS Real Estate Investment Trust (A-Reit) appears off to a good start with a promising set of results for the first quarter ended June 30.

Turnover for the period climbed 18.4 per cent to $142 million from $119.9 million a year back following additional rental from the acquisitions of Cintech I, Cintech II, and Cintech III & IV back in March this year and the completion of two developments, 90 Alps Avenue and FoodAxis@Senoko, in January and February respectively.

These transactions drove up overall property operating expenses by some 31.1 per cent to $40.8 million, but net property income still recorded a growth of 13.9 per cent to $101.1 million.

Consequently, the total amount available for distribution also jumped 16.1 per cent to $76.5 million, translating to a distribution per unit (DPU) of 3.53 cents (or an annualised distribution yield of 6.5 per cent as of yesterday's closing price), as compared to 3.20 cents during the same period a year ago.

A-Reit started a $1 billion multicurrency medium-term note programme back in March 2009, and highlighted that as at end-June, $627 million remains outstanding, of which $153.7 million was issued on April 23 this year and will mature in April 2024.

Additionally, the group also has various bilateral banking credit facilities with varying degrees of utilisation as at the end of the quarter.

Interest wise, 68.9 per cent of A-Reit group's interest rate exposure is fixed with an overall weighted average tenure of 4.6 years remaining (after factoring in the impact of interest rate swaps) as at end-June, while the overall weighted average cost of funds stood at 3.2 per cent.

Yesterday, the industrial Reit counter closed one cent higher at $2.18.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G) | | | |

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