Ascendas REIT’s fiscal 4Q net property income rose on Australia, UK acquisitions

Singapore 50 dollar bill

Ascendas REIT reported Monday its fiscal fourth quarter net property income rose 3.5 percent on-year to S$163.43 million on acquisitions in Australia and the U.K. The results beat a forecast from Daiwa.

“Ascendas REIT continues to deliver a steady performance amid the current market uncertainties. During the year, we expanded our overseas investments to include U.K. to achieve a more diversified and sustainable income stream,” William Tay, CEO and executive director of the REIT manager, said in a statement.

The results were also boosted by contributions from the completed redevelopment works at Schneider Electric Building, previously known as 50 Kallang Avenue, and at 20 Tuas Avenue 1, the REIT said.

Gross revenue for the quarter ended 31 March rose 4.3 percent on-year to S$225.06 million, the REIT said in a filing to SGX after the market close. The distribution per unit (DPU) for the quarter was 4.148 Singapore cents, up 6.1 percent from 3.910 Singapore cents in the year-ago quarter.

Daiwa had forecast fiscal fourth quarter net property income of S$178.1 million on revenue of S$234.0 million, with a DPU of 4.17 Singapore cents.

Property operating expenses increased 6.5 percent on-year in the quarter to S$61.63 million on the new acquisitions and expenses for deploying a new operation command center supporting multiple buildings in Singapore, the filing said. The REIT said it acquired S$948 million worth of properties during the fiscal year.

The REIT posted a foreign exchange gain of S$11.63 million for the quarter, swinging from a year-ago loss of S$29.92 million as the Singapore dollar strengthened against the Hong Kong dollar, the Japanese yen and the U.S. dollar in relation to foreign-currency denominated borrowings.

For the full year, Ascendas REIT reported net property income of S$649.58 million, up 3.2 percent on-year, on gross revenue of S$886.17 million, up 2.8 percent on-year.

As of end-March, Ascendas REIT had 171 properties, with 98 in Singapore, 35 in Australia and 38 in the U.K., up from 131 properties at the end of the previous fiscal year, the filing said.

The REIT issued a cautious outlook, warning that an “excessive” new supply of industrial space over the past four to five years and the additional 2.8 million square meters of new industrial space expected this year and next were expected to “keep a lid” on leasing and rents.

 

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