Ascendas India Trust distribution per unit declines 8%

Higher fuel costs erode net property income.

Ascendas India Trust (a-iTrust) announced that its 2Q FY13/14 revenue remained stable in Indian Rupee terms, but higher fuel costs resulted in a slight decline in net property income.

2Q FY13/14 income available for distribution increased by 19% as a result of higher interest income, larger realised foreign exchange gains, and lower finance costs. 2Q FY13/14 DPU (income to be distributed) in Indian Rupee terms was stable at ₹0.53. In Singapore Dollar terms, its appreciation against Indian Rupee by 11% caused the 2Q FY13/14 DPU (income to be distributed) to decline to 1.10¢.

The Trust’s gearing was 20% in September 2013, with additional debt headroom of S$291 million before reaching the 40% gearing mark. This provides the Trust with sufficient capacity to fund its growth pipeline using debt.

The Trust concluded 1.0 million sq ft of leases during the period between 1 April 2013 and 30 September 2013.

The portfolio maintained a committed occupancy level of 97% as at 30 September 2013. a-iTrust has a well-diversified portfolio with close to 330 office and retail tenants. Tenant concentration risks remain low as the top ten tenants contributed 31% of portfolio base rent, with the single largest tenant accounting for 5% of the portfolio base rent.

But a-iTrust pointed to some growth drivers in its pipeline.

Chief Executive Officer of the Trustee-Manager, Mr Jonathan Yap said, “We are pleased that Aviator, our new 601,360 sq ft IT building that is under construction in Bangalore, has been fully committed ahead of its completion. Aviator will increase our portfolio floor area by close to 10% on target completion in December 2013.”

In Hyderabad, a-iTrust has invested ₹1.75 billion in aVance 3, a 690,520 sq ft IT building. Construction of aVance 3 was completed in early July, and its first tenant has since commenced operations. As at 30 September 2013, aVance 3 was 41% leased. a-iTrust intends to acquire the property once it is substantially leased out.