Ascendas India Trust posts 1H21 net property income rose 5 percent to S$77.3M

Artist impression of Ascendas India Trust’s first data centre campus in India. Credit: CapitaLandArtist impression of Ascendas India Trust’s first data centre campus in India. Credit: CapitaLand

Ascendas India Trust reported Wednesday its first half net property income rose 5 percent on-year to S$77.3 million, mainly on the completion of the Endeavour building in Bangalore in November 2020 and the acquisition of the aVance 6 building in Hyderabad in March.

The increases were partly offset by lower portfolio occupancy and lower utilities and carpark income as the pandemic pushed tenants to continue working from home, the statement said, adding operation and maintenance expenses also declined.

Total property income fell 4 percent on-year to S$95.4 million in the January-to-June period as the Singapore dollar appreciated against India’s rupee, the trust said in a filing to SGX.

The distribution per unit (DPU) fell 9 percent on-year for the period to 4.20 Singapore cents, mainly on the one-off reversal of a dividend distribution tax provision the previous year and the Singapore dollar appreciating against India’s rupee, A-iTrust said.

In rupee terms, net property income grew 10 percent on-year in the first half to 4.25 billion rupees, while total property income increased 1 percent on-year to 5.25 billion rupees. The Singapore dollar appreciated by 4.8 percent against India’s rupee in the period.

The trust said it had a realised exchange loss of 463 million rupees, or around S$8.4 million, mainly from settling Singapore dollar-denominated loans.

Sanjeev Dasgupta, CEO of the trust’s manager, issued a cautious outlook amid the pandemic’s impact on India.

“The second wave of Covid-19 in India presented a challenge and an opportunity to strengthen relationships with the companies operating within our business parks. We have been actively engaged in providing support to maintain a safe environment and keep our parks operational throughout the period,” Dasgupta said in the statement.

“The leasing environment remains challenging. Our committed portfolio occupancy has decreased from 94 percent as at 31 December 2020 to 90 percent as at 30 June 2021. Despite the subdued leasing environment, we have leased/renewed 1.8 million square feet in the first half of 2021,” he added.