Ascendas REIT's property in Changi Business Park, One@Changi City. (Photo: REITsWeek)

Ascendas REIT has reported a distribution per unit (DPU) of 4.002 Singapore cents for its 1Q FY18/19, a decline of 1.2% from what was reported in the corresponding period of the previous financial year.

The fall came on the back of a 1.0% year-on-year decline in distributable income, which slid to SGD117.3 million (USD86.5 million) as a result of a one-off distribution made in 1Q FY17/18.

Excluding the one-off distribution, Ascendas REIT’s distributable income, and DPU would have increased by 4.1%, and 4.0% year-on-year respectively.

The REIT’s gross revenue increased by 1.5% to SGD216.6 million, while its net property income (NPI) rose by 3.8% to SGD159.2 million owing to contributions from newly acquired properties in Brisbane, Australia, and a redeveloped property, 50 Kallang Avenue in Singapore.

The REIT also saw lower property operating expenses for the quarter, which contributed to the higher NPI.

Ascendas REIT’s overall portfolio occupancy rate declined to 90.5% from 91.5% a quarter ago.

Particularly hit was the REIT’s Singapore portfolio occupancy rate, which declined to 88.1%, down from 89.5% as at 31 March 2018.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.