a-iTrust first-quarter income available for distribution up 17%

Property and finance costs have declined.

Ascendas Property Fund Trustee Pte Ltd, the Trustee-Manager of Ascendas India Trust (a-iTrust), has revealed the results of a-iTrust for the first quarter ended 30 June 2013 (1Q FY13/14).

Chief Executive Officer of the Trustee-Manager, Mr Jonathan Yap said, “a-iTrust grew distributable income in 1Q FY13/14, aided by lower property expenses and finance costs. First quarter DPU in Indian Rupee terms was stable, after taking into account the increase in outstanding units post the October 2012 private placement. With a current gearing of 24%, the Trust has more than sufficient debt headroom to fund both organic growth and acquisitions of sponsor and third-party assets.”

The construction of aVance 3, a 690,520 sq ft multi-tenanted IT building in Hyderabad, was completed recently. The building was 41% pre-leased as at 30 June 2013, and a-iTrust intends to acquire aVance 3 once it is substantially leased out.

Aviator is a new 601,360 sq ft IT building that a-iTrust is constructing in Bangalore. It was 67% constructed as at 30 June 2013, and remains on track for completion by the end of 2013. Cybervale is a 567,480 sq ft IT park located in a Special Economic Zone in Chennai, and was developed by the Trust’s sponsor, Ascendas Group. The property is 100% occupied, and its income is fully stabilised. a-iTrust has a right of first refusal to acquire Cybervale should Ascendas Group decide to sell the property.

While a-iTrust’s 1Q FY13/14 revenue remained stable in Indian Rupee terms, lower property expenses and finance costs increased income available for distribution by 17%. DPU (income to be distributed) in Indian Rupee terms was stable at INR 0.51. In Singapore Dollar terms, unfavourable currency movements caused the 1Q FY13/14 DPU (income to be distributed) to decline to 1.14¢.

The Trust’s gearing2 was 24% in June 2013, with additional debt headroom of S$200 million before reaching the 40% gearing mark. This provides the Trust with sufficient capacity to fund its growth pipeline using debt.

The Trust concluded 0.2 million sq ft of leases during the period between 1 April 2013 and 30 June 2013. Almost all of the tenants whose leases expired during the quarter were retained. The portfolio maintained a committed occupancy level of 97% as at 30 June 2013. a-iTrust has a well-diversified portfolio with over 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.