Ascendas India Trust reports 1Q22 net property income rose 4 percent

Ascendas India Trust acquired Building Q1 at Aurum Q Parc at Navi Mumbai in November 2021. Credit: Ascendas India TrustAscendas India Trust acquired Building Q1 at Aurum Q Parc at Navi Mumbai in November 2021. Credit: Ascendas India Trust

Ascendas India Trust reported Monday its first quarter net property income rose 4 percent on-year in Singapore-dollar terms to S$40 million on higher total property income, partly offset by higher operating costs and the reversal of an expected credit loss a year earlier.

Total property income for the January-to-March period rose 6 percent on-year to S$49.7 million, on higher contributions from the aVance 6 property in Hyderabad as well as from Building Q1, and Aurum Q Parc, which were acquired in March and November 2021, respectively, the trust said in a filing to SGX.

Higher utilities income also contributed to higher total property income, the filing said.

In Indian rupee terms, total property income rose 7 percent on-year in the quarter to INR2.77 billion, while net property income grew 5 percent on-year to INR2.23 billion, the REIT said.

Portfolio rental reversion was a positive 2.8 percent for the quarter, and committed portfolio occupancy was at 87 percent as of 31 March, Ascendas India Trust said.

Outlook

Ascendas India Trust issued a positive outlook.

With the decline in Covid-19 cases and an increase in India’s vaccination rate, the physical park population has jumped to 15 percent to 30 percent, compared with less than 5 percent during most of 2021, the REIT said.

“We are seeing recovery in the leasing environment and expect leasing activity to pick up further in 2022. IT spending in India is increasing and IT service companies have reported strong earnings and robust hiring plans. Office space absorption in the seven top cites increased 25 percent as compared to same quarter last year,” the trust said, citing data from property consultancy Knight Frank India.

“A-iTrust will continue its diversification into new economy asset classes to further strengthen portfolio resilience and performance. We remain confident in the demand for our IT Parks asset class and growth in logistics/industrial/data centers,” the trust said.

Read more details of Ascendas India Trust’s first-quarter update.