Ascendas India Trust reports 25% (YoY) growth in DPU for 3Q FY18/19
Summary | 3Q FY18/19 | YoY Change |
In Indian Rupee (“INR/₹”): |
||
Total property income (million) | 2,361 | 6% |
Net property income (million) | 1,779 | 14% |
Income available for distribution (million) | 1,238 | 53% |
Income to be distributed (million) |
1,115 | 53% |
In Singapore Dollar (“SGD/S$”): |
||
Total property income (million) |
44.9 |
(3%) |
Net property income (million) |
33.9 |
4% |
Income available for distribution (million) |
23.6 |
39% |
Income to be distributed (million) |
21.2 |
39% |
Income to be distributed (DPU1 ) (S¢) |
2.05 |
25% |
Exchange rate movements |
3Q FY18/19 |
YoY Change |
Average SGD/INR exchange rate2 |
52.5 |
9.8%3 |
24 th January 2019, Singapore
Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust” or the “Trust”), has reported the results of a-iTrust for the third quarter ended 31 st December 2018 (“3Q FY18/19”).
Mr Sanjeev Dasgupta, Chief Executive Officer said, “We are pleased to report a healthy year-onyear growth of 25% in the Trust’s third quarter DPU in Singapore Dollar terms, supported by income contributions from interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding. Incremental income from the acquisition of Arshiya warehouses, higher income contributions from BlueRidge 2 and Atria building and positive rental reversions further contributed to DPU growth. There was also a one-off tax benefit from the merger of the legal entities of The V and BlueRidge 2, which contributed to the DPU growth.
Operationally, we have done well in leasing out BlueRidge 2, which has attained leasing commitment of 96%. At the overall portfolio level, committed occupancy continued to be robust at 98% as of 31st December 2018.”
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1 Distribution per unit.
2 Average exchange rates used in the income statement.
3 The Singapore Dollar appreciated by 9.8% against the Indian Rupee.
Financial performance (3Q FY18/19 vs 3Q FY17/18)
In Indian Rupee terms, third quarter revenue grew by 6% to ₹2.4 billion due to incremental rental income from BlueRidge 2 (acquired in February 2017), Atria building (completed in September 2017), Arshiya warehouses (acquired in February 2018), and positive rental reversions from existing properties, partly offset by lower utilities income with the phasing out of the Dedicated Power Plant at ITPB (“DPP”). Total property expenses for the third quarter decreased by 12% to ₹582 million mainly due to lower utilities expenses with the phasing out of the DPP, partly offset by higher property management fees on account of new properties. As a result, net property income increased by 14% to ₹1.8 billion.
In Singapore Dollar terms, 3Q FY18/19 DPU1 increased by 25% year-on-year to 2.05 S₵ despite the depreciating Indian Rupee. This was mainly due to higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2. Higher net property income and a one-off tax benefit from the merger of the legal entities of The V and BlueRidge 2 also contributed to the DPU growth.
Portfolio performance & capital management
a-iTrust’s committed portfolio occupancy remained healthy at 98% as of 31 st December 2018. The current committed occupancy for BlueRidge 2 has increased to 96% from 55% as at March 2017.
Growth initiatives
At The V, a-iTrust had received in-principle approval to redevelop the park. Construction of Phase 1 will commence upon receiving final approval of the building permit. The planned redevelopment will increase leasable area by 3.5 million square feet over the next seven to ten years. Phase I of the redevelopment entails constructing a new building with a total floor area of approximately 1.4 million square feet to replace the previous Auriga building and auditorium. In 3 preparation for this, relocation of Auriga tenants and demolition of Auriga building and the auditorium has been completed. Phase I is expected to complete by the second half of 2021
In Bangalore, construction of a new 0.5 million square feet building is underway, and is expected to complete by the first half of 2019. A second building with total floor area of 0.7 million square feet will commence construction in the first quarter of 2019 and is expected to complete by the second half of 2020. Both buildings have been 100% pre-leased to a leading IT Services company.
A copy of the full results announcement is available at www.sgx.com and www.a-iTrust.com