Tag Archives: Funds

A-REIT’s Q1 DPU up 10.3%

Posted on 18 Jul 2012 | Comments Off on A-REIT’s Q1 DPU up 10.3%

Ascendas Real Estate Investment Trust (A-REIT) has reported a 10.3 per cent on-year increase in Distribution per Unit (DPU) to 3.53 cents for its first quarter ended 30 June 2012.

In a filing on the Singapore Exchange, A-REIT said its DPU grew despite a 7.5 per cent increase in units outstanding.

The amount available for distribution increased 16.1 per cent to S$76.5 million in Q1.

For the first quarter, A-REIT booked a net property income of S$101.1 million, up 13.9 per cent from the previous year.

It added that gross revenue rose 8.4 per cent year-on-year to S$142.0 million, largely due to the completion of development projects and acquisitions during the past year.

Chief executive officer and executive director of the manager, Tan Ser Ping said: “A-REIT’s portfolio has remained resilient despite the uncertainties in the global economy. Occupancy rate remained stable in Q1 FY12/13 and we continued to enjoy positive rental reversion throughout all the segments of the portfolio.”

A-REIT said its occupancy rate for the portfolio improved to 94.6 per cent on Q1, up from 94.3 per cent in the previous quarter.

Meanwhile, occupancy rate for multi-tenanted buildings also improved from 89.5 per cent to 90.1 per cent in Q1.

On the outlook ahead, A-REIT said it is well-diversified in terms of rental income with the single largest tenant accounting for not more than 5.7 per cent of its gross revenue.

A-REIT added that its portfolio has a good mix of long and short term leases with a weighted average lease to expiry of about four years which will provide sustainable and predictable earnings.

For the remaining of the financial year, A-REIT said it has about 9.1 per cent of its revenue due for renewal.

In addition, A-REIT said full year contribution from acquisitions and developments completion in prior financial year is expected in this financial year.

Barring any unforeseen event, A-REIT expects to maintain a stable performance in the financial year ending 31 March 2013.

Source : Channel NewsAsia – 17 Jul 2012

Comments Off on A-REIT’s Q1 DPU up 10.3%

Posted in Funds

Tagged , , , ,

Increase in Singapore’s real estate investment

Posted on 17 Jul 2012 | Comments Off on Increase in Singapore’s real estate investment

Activity in Singapore’s real estate investment increased by 48 per cent, in the second half of 2012.

Investment increased to S$6.9 billion (US$5.5 billion), reported DTZ Research.

In the first half of 2012, investment deals totaled S$11.6 billion (US$9.2 billion), a decrease of 32 per cent, y-o-y.

Government purchases of land also witnessed a decrease: accounting for 43 per cent of overall investment value – lower than the historical average of 48 per cent throughout the previous four quarters, reported Channel News Asia.

REITS moved from net sellers in Q2 from net buyers in the first quarter.

Acquisitions made by REITS fell by 61 per cent on-quarter to S$290.1 million (US$230 million).

According to DTZ Research, this was due to divestments made to achieve greater value for REITS’ unit holders, which would otherwise have required greater capital to hit higher rentals and occupancy rates.

There were two REIT investment acquisitions made in Q2, with Cache Logistics Trust acquiring Pandan Logistics Hub and K-REIT expanding its stake in Ocean Financial Centre.

An improvement in cross-border activity was reported with values of cross-border transactions increasing by 43 per cent on the previous quarter. This was largely due to purchases made by inter-regional funds, which accounted for 57 per cent of total cross-border investment.

In both quarters, cross-border investment continues to equate for 16 per cent of real estate activity.

Chua Chor Hoon, DTZ’s head of Asia Pacific research, said: ” Although we see an increase in enquiries from foreign investors, they are also looking to other countries, such as China, Japan and Australia, for growth opportunities and higher yields. Against this backdrop, 2012 investment sales activity is likely to be less than 2011′s S$28.6 billion.” (US$22.7 billion).

Investment activity in the second half of 2012 is expected to be dominated by developers purchasing GLS sites and REIT activity.

Source : PropertyReport – 2012 Jul 17

Comments Off on Increase in Singapore’s real estate investment

Posted in Funds

Tagged , , , ,