9 Key Takeaways From Ascendas Real Estate Investment Trust’s Latest Earnings
Ascendas Real Estate Investment Trust (SGX: A17U), or Ascendas REIT, released its 2018/19 first quarter (1Q FY18/19) earnings update recently. As a quick introduction, Ascendas REIT owns properties that are used for either commercial or industrial purposes, or both. It has 99 properties in Singapore and 33 properties in Australia.
Here are nine things investors should know about Ascendas REIT’s latest results:
1. Gross revenue for the reporting quarter grew 1.5% to S$216.6 million while net property income improved by 3.8% to S$159.2 million.
2. Yet, the REIT’s distribution per unit (DPU) was down by 1.2% year-on-year to 4.002 cents. Excluding one-off distribution, DPU would have improved 4.0% year-on-year.
3. Based on Ascendas REIT’s annualised DPU of 16.008 cents and its closing unit price of S$2.74 as of 3 August 2018, the REIT has a trailing distribution yield of 5.8%.
4. As of 30 June 2018, the REIT’s gearing stood at 35.7%, which is a safe distance from the regulatory ceiling of 45%.
5. The REIT’s portfolio had an occupancy rate of 90.5% at the end of the quarter.
6. The weighted average lease expiry (by gross revenue) was 4.1 years, as of 30 June 2018.
7. Ascendas REIT has about 1,310 tenants as of 30 June 2018. The top 10 tenants accounted for 20.3% of portfolio committed rental income.
8. Rental reversion for multi-tenant building was positive 10.5% in the latest quarter.
9. Ascendas REIT completed the acquisitions of two logistics properties in Australia for S$50.9 million, and announced its first foray into the United Kingdom via the acquisition of 12 logistics properties.