Tag Archives: Singapore REITS

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

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REITs to boost property sector

Posted on 14 Jul 2012 | Comments Off on REITs to boost property sector

The property market is expected to see demand rise over the next 12 months from deep-pocketed institutional buyers such as real estate investment trusts (REITs), which are starting to see more value in the local marketplace, analysts say.

More REIT listings are also likely to spur acquisitions here. The proposed listing of Ascendas Hospitality Trust is set to be Singapore’s largest initial public offering this year, targeting between S$770 million and S$823 million. And experts say more of such REIT listings are to come.

With revenue per available room forecast to increase due to a supply shortage, hospitality REITs with Singapore assets will be attractive to investors.

“They will be successful as long as they can acquire several anchor Singapore properties,” said Mr John Stinson, Managing Director of Capital Markets, Asia-Pacific, Cushman & Wakefield.

“It’s a good time for REITs to be acquiring properties. In the next 12 months, the very successful, the larger REITs will grow in size. As they grow in size, they will rationalise their small properties.”

At its property prospects seminar yesterday, the Real Estate Developers’ Association of Singapore (REDAS) noted that the additional buyer’s stamp duty has brought about new trends in the non-residential property market.

Record transactions have been made for industrial property recently, while the retail property sector also performed strongly, it said.

Source : Today – 13 Jul 2012

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