Ascendas REIT reports 6.7% distribution amount hike for FY 2020

Meanwhile, the REIT’s gross revenue soared by 13.6%

The total amount for distribution of Ascendas REIT climbed by 6.7% YoY in FY 2020 to $538.4m, according to a report by REIT manager Ascendas Funds Management.

The distribution amount has been partially offset by increase in non-property operating expenses related to new acquisitions as well as higher net finance costs caused by higher average debt balances.

Gross revenue for FY 2020 hiked by 13.6% YoY to $1,049.5m, primarily due to contribution by the portfolio of 28 business park properties in the United States and two business park properties in Singapore. Concurrently, the recently completed suburban office at 254 Wellington Road in Melbourne, Australia as well as the two San Francisco-located office properties also helped bump up gross revenue.

The growth in gross revenue was slightly offset by $17.8m of rent rebate logged in FY 2020 as part of Ascendas REIT’s assistance provided to tenants when the pandemic struck. Meanwhile, a decline in revenue due to lower occupancies in some properties also contributed.

For FY 2020, net property income surged by 9.4% YoY to $776.2m.

“Despite the challenging environment in 2020, I am pleased that Ascendas Reit delivered a resilient DPU of 14.688 cents,” said William Tay, CEO and executive director of Ascendas Funds Management. “This was underpinned by a diversified portfolio with exposure in business park, logistics, and high-specs segments across selected strong markets.”