A-REIT reports 4% increase in distribution per unit in Q3 2012

Ascendas Real Estate Investment Trust (A-REIT) has reported a 4.0 per cent on-year increase in distribution per unit (DPU) to 3.62 cents for its third quarter ended 31 December 2012.

The amount available for distribution increased 11.9 per cent to S$81.1 million in the quarter under review.

In a filing on the Singapore Exchange, A-REIT said it recorded positive rental reversion of between 5.5 per cent and 25.3 per cent over the preceding rental rate for renewal leases.

Despite the weakening economic climate, A-REIT said its occupancy rate for the portfolio remained stable at 96.4 per cent.

Meanwhile, occupancy rate for multi-tenanted buildings (on a same-store basis) stood at 93.5 per cent.

For the remaining of the financial year, A-REIT has about 2.1 per cent of its revenue due for renewal.

In the next financial year, about 24.6 per cent of its property income will be due for renewal.

A-REIT said it has started renewal negotiation, with about 22 per cent of the related expiring revenue renewed and another 13 per cent in advance negotiation.

A-REIT added that it has secured commitment for about 31 per cent of the lettable space at Nexus@one-north (previously known as Fusionopolis Phase 3), which is scheduled to be completed in the third quarter of 2013.

To take advantage of the prospective future demand in the Jurong Lake District, A-REIT has also started new asset enhancement work at 31 International Business Park

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

Source : Channel NewsAsia – 15 Jan 2013

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