Ascendas India Trust reports 3Q21 net property income rose 8 percent

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 third quarter net property income increased 8 percent on-year to S$39.9 million on contributions from Anchor Annex building at ITPL and aVance 6 at aVance Hyderabad.

The increases were offset by lower occupancy, lower utilities income and lower carpark income due to Covid-19, the trust said in a filing to SGX.

Total property income increased 4 percent on-year in the July-to-September period to S$48.9 million the Ascendas India Trust said.

Office rent collection was 99 percent in July, 97 percent in August and 96 percent in September, the trust said.

The committed portfolio occupancy was 89 percent, the trust said.

Ascendas India Trust said it leased and renewed 2.2 million square feet across the portfolio in the nine-month period.

During the third quarter, the trust completed the acquisition of land for development for its first data center campus in Navi Mumbai, with the site to be developed in phases; the total purchase consideration was around S$23.8 million.

For the January-to-September period, net property income increased 6 percent on-year to S$117.2 million, while total property income fell 1 percent on-year to S$144.3 million, Ascendas India Trust reported.

Outlook

The trust was positive on the outlook.

“Leasing discussions have re-started after the second wave. As the Covid-19 situation improves, we expect leasing activity to pick up further in the early part of 2022,” the trust said.

“The IT services companies have seen strong customer demand arising from Covid-19 and are hiring large numbers of new employees and fresh IT graduates in particular. We remain confident in the long-term resilience of our IT Parks asset class and growth in logistics/industrial/data centres. A-iTrust continues to diversify into new economy asset classes to strengthen our portfolio resilience and increase revenue streams,” the trust said.

Read Ascendas India Trust’s filing to SGX.