Ascendas India Trust fiscal 2Q net property income rises after acquisitions

Singapore two-dollar bills

Ascendas India Trust reported on Wednesday that its fiscal second quarter net property income rose 4 percent on-year to S$32.9 million, despite a weaker Indian rupee, after the acquisitions of the BlueRidge 2 and Arshiya warehouses.

Total property income fell 2 percent on-year to S$44.9 million in the quarter ended 30 September, while income available for distribution rose 46 percent on-year to S$22.9 million, the trust’s manager said in a filing to SGX on Wednesday after the market close.

The distribution per unit (DPU) rose 32 percent on-year to 1.98 Singapore cents, it said. The ex-distribution date will be 14 November and the payment date will be 26 November, the trustee-manager said.

Sanjeev Dasgupta, CEO of Ascendas India Trust’s trustee-manager, Ascendas Property Fund Trustee, said in the statement that the rise in DPU “was mainly due to incremental income contributions from the acquisitions of BlueRidge 2 and Arshiya warehouses, the Atria building, higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding and positive rental reversions, along with a one-off gain from the scrap sale of the Dedicated Power Plant at ITPB.”

BlueRidge 2 was acquired in February 2017, the Atria building was completed in September 2017 and the Arshiya warehouses were acquired in February 2018, it said.

He said committed portfolio occupancy was “robust” at 97 percent as of the end of the quarter.

“We continue to make good progress in leasing out BlueRidge 2, which has attained leasing commitment of 91 percent. To further bolster our growth pipeline, we also recently announced the proposed acquisition of aVance A1 & A2 in Hyderabad, a market with healthy rental growth driven by strong demand from global IT companies,” he added.

In rupee terms, net property income rose 14 percent on-year to 1.70 billion rupees, while total property income rose 8 percent on-year in the quarter to 2.32 billion rupees, it said. That was after the Singapore dollar/Indian rupee average exchange rate rose 8.7 percent on-year, it said.

For the fiscal first half, net property income rose 7 percent on-year in Singapore-dollar terms to S$66.52 million, while total property income fell 2 percent on-year to S$89.79 million. The DPU for the first half was 3.58 Singapore cents, up 27 percent on-year, it said.

Ascendas India Trust had seven IT parks and six operating warehouses across India’s primary IT and logistics centers as of 30 September, the filing said.

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