COMMERCIAL PROPERTY | Staff Reporter, Singapore

Ascendas REIT’s net property income jumps by 24.1% to $142.2m

Thanks to its diversified and resilient portfolio.

A combination of long-term and short-term leases worked wonders for Ascendas real estate investment trust (REIT) as its diversified portfolio allowed its total amount available for distribution to grow by 11.7% yoy to $96.6m in 3Q.

According to a press release by Ascendas REIT, in the third quarter of 2015 alone, acquisitions by the firm in Australia and Singapore totaled $1.5b.

“The acquisitions comprising 27 freehold logistics facilities in Australia and a business park property in Singapore are aligned with our strategy to build a high quality and diversified portfolio to deliver sustainable returns for our Unitholders,” said Tan Ser Ping, CEO of Ascendas REIT.

Analysts from Maybank Kim Eng said while supply woes remain in 2016 aggravated by the economic weakness, supply woes are to taper dramatically by 2017.

“In terms of core operating numbers, respectable rent reversions of 7.3% for the quarter also contributed. Occupancy in SG held steady at 88.9%, declining from 2Q’s 89.8% only because of the inclusion of a new empty block at 40 Penjuru Lane,” Maybank Kim Eng said.

Meanwhile, overall portfolio occupancy also rose from 89% to 89.2% mainly due to its Aussie properties, Maybank Kim Eng said.

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