Ascendas REIT's NPI up 8.5% to $182.3m in Q3

Its logistics assets in the UK led has the most contributions.

Ascendas REIT saw its net property income (NPI) rose 8.5% YoY to $182.3m in Q3 2019 from $168m in 2018, an announcement revealed. However, its distribution per unit (DPU) fell 12.3% to 3.51 cents from 4 cents over the same period.

Total amount available for distribution edged up 2.1% YoY in Q3 to $126.9m from $124.3m, whilst its gross revenue also grew 5.1% YoY to $239.7m from $226.4m in Q3 2018.

For its 9M period, NPI edged up 10.6% YoY to $537.7m from $486.1m in 9M 2018, whilst its DPU dipped 3.3% YoY to 11.49 cents. The NPI growth was attributed to contributions from the 38 logistics properties in the UK, 28 properties in the US and two properties in Singapore.

As of 31 December 2019, Ascendas REIT’s portfolio comprises 200 properties located across Singapore, Australia, the UK and the US. Singapore properties accounts for 72% of the portfolio by asset value and its customer base of about 1,490 tenants is spread across properties in five industrial sub-segments: business & science park properties, high-specifications industrial, light industrial properties, integrated developments and logistics and distribution centres.

The news release also added that based on new leases, tenants from the engineering sector accounted for the largest proportion of new demand by gross rental income in 3Q FY2019 (30.2%) and in FY2019 (20.5%).

Furthermore, 29% of Ascendas REIT’s portfolio are single-tenant buildings, whilst the remaining 71% are multi-tenant buildings.

Overall portfolio occupancy rate remained stable at 90.9%. The Singapore portfolio occupancy rate declined to 87.2% QoQ from 88.1% in end-Q2 2019, no thanks to lower occupancies at Wisma Gulab, 40 Penjuru Lane and Pioneer Hub.

Its Australian portfolio occupancy rate improved to 97.4% QoQ due to a new take-up at 62 Stradbroke Street, which is now 100% occupied, as well as the decommissioning of partial space at 484-490 and 494-500 Great Western Highway for asset enhancement works.

In the UK, occupancy rate was also stable at 97.7%, whilst the newly acquired US portfolio occupancy rate was 93.9%.