Ascendas India Trust reports 28 percent YoY growth in DPU for 1Q FY2019
Ascendas India Trust reports 28% (YoY) growth in DPU for 1Q FY2019
Singapore, 25 July 2019 –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 first quarter ended 30th June 2019 (“1Q FY2019”).
Mr Sanjeev Dasgupta, Chief Executive Officer said, “We are pleased to report a 28% growth in the Trust’s first quarter DPU, in Singapore Dollars terms, compared to the same period last year. Higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding, along with the completion of Anchor building5 and positive rental reversions contributed to the stronger performance.
Operationally, our overall committed occupancy remained robust at 99% as of 30th June 2019. In Bangalore, we have handed over possession of Anchor building (completed in May 2019). This fully leased 0.5 million square feet building has started contributing to our income in this quarter and will further add to net property income in the coming quarters.”
Financial performance (1Q FY2019 vs 1Q FY18/19)
In Indian Rupee terms, first quarter revenue grew by 12% to ₹2.5 billion due to higher occupancy in aVance, Pune6, income from Anchor building and positive rental reversions from existing properties. The healthy revenue growth led to an increase in net property income of 15% to ₹1.9 billion.
In Singapore Dollar terms, 1Q FY2019 DPU increased by 28% year-on-year to 2.05 S₵ largely due to higher interest income from construction funding of AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 and higher net property income.
Portfolio performance & capital management
a-iTrust’s overall committed portfolio occupancy remained robust at 99% as at 30th June 2019.
The gearing ratio was 33% as at 30th June 2019. Based on its current gearing limit of 45%, the Trust has total debt headroom of S$510 million. 84% of the Trust’s borrowings were effectively on a fixed-interest rate basis. 67% of the total borrowings were hedged into Indian Rupees.
In June 2019, a-iTrust entered into a forward purchase agreement to acquire BlueRidge 3, an IT/ITES special economic zone development located at Hinjawadi, Pune. The project will be constructed in two phases with total net leasable area of up to 1.8 million square feet, inclusive of amenities such as cafeteria. a-iTrust entered into a forward purchase agreement in July 2019 to acquire a 7th warehouse at the Arshiya Free Trade Warehousing Zone, Panvel, near Navi Mumbai. Once acquired, the 0.3 million square feet warehouse will be leased under a master lease arrangement with a subsidiary company of the vendor.
As previously reported, the redevelopment of The V will increase net leasable area by 3.5 million square feet over the next seven to ten years. Phase I of the redevelopment, a 1.4 million square feet building, has commenced and is expected to complete by the second half of 2021.
In Bangalore, construction of a 0.7 million square feet multi-tenanted building has commenced and is expected to complete by the second half of 2020. The building has been 100% pre-leased to a leading IT Services company.