Ascendas REIT posts 86.9% portfolio occupancy in Q1

The QoQ decline was largely due to non-renewals at the TÜV SÜD PSB Building.

Ascendas REIT registered an 86.9% portfolio occupancy in Singapore for Q1, with a positive rental reversion of 2.9% during the period, according to an announcement.

It declined both QoQ from 88.4%, and YoY from 88.6%. The decrease was largely attributed to non-renewals at TÜV SÜD PSB Building, as it is planned for redevelopment.

Amidst the Singapore economy’s 5.4% contraction in 2020, Ascendas REIT noted that demand is expected to remain subdued as companies are likely to stay cautious due to global uncertainties.

“Our priority is to keep building a stronger and profitable portfolio for the longer term. Ascendas REIT’s strong financial profile allows us to seize good opportunities to grow. We will maintain our long-standing strategy of diversifying across multiple developed countries and asset classes,” it said.

The REIT has also recorded a healthy balance sheet for Q1, with a 38% aggregate leverage.