TWO large real estate investment trusts (Reits) yesterday reported higher quarterly distributable income amid a positive economic climate.
CapitaMall Trust (CMT), Singapore’s first and largest reit, said distributable income was $53.2 million in the third quarter ended Sept 30. This is 17.2 per cent higher than forecast and a 29 per cent rise from a year ago.
The retail Reit said the sum includes a capital distribution of $1.5 million from its 20 per cent investment in CapitaRetail China Trust.
Distribution per unit reached 3.4 cents in the third quarter. Net property income was $76.8 million, up 21.7 per cent from forecast.
Compared with the third quarter of last year, annualised distribution per unit rose 19.3 per cent to 13.49 cents.
CMT owns 13 retail malls here, including Plaza Singapura, Tampines Mall and Rivervale Mall.
Its rental renewal rates for the first three quarters of this year registered 12.1 per cent growth over preceding rates, and 5.5 per cent over projected rates.
Mr Pua Seck Guan, the chief executive of the trust’s manager, said assets had registered good organic growth and the Reit is also actively seeking yield-accretive acquisitions to grow its target local asset size to $8 billion by 2010.
CMT, which has assets worth about $5.8 billion, is enhancing several assets. At Tampines Mall, for instance, several new tenants, including skin and hair-care firm Kiehl’s, will set up shop by December.
CMT is also applying for permission to add about 95,000 sq ft of office space at the mall. This will entail a cost of $25.9 million.
Ascendas Real Estate Investment Trust (A-Reit) too delivered a favourable set of results, with distributable income for its second quarter that ended Sept 30 rising 15 per cent year on year to $46.4 million.
Distribution per unit was at 3.51 cents, up 11 per cent from a year ago.
The industrial Reit has benefited from increased demand, due to the take-up of space by tenants forced out of the tight office market.
Property occupancy reached a high of 98.3 per cent, up from 97.2 per cent three months ago.
Mr Tan Ser Ping, the chief executive of A-Reit’s manager, said net income rose 15.9 per cent to $118.2 million on the back of positive economic performance and increasing demand for quality business space.
A-Reit achieved a 32.3 per cent rise in rental rates for its business and science park space compared with the previous quarter, and a 15.5 per cent increase for high-tech industrial space.
A-Reit said it has secured over $270 million in new investments in development projects and acquisitions.
Source : Straits Times - 20 Oct 2007