HELPED by higher rental rates from its assets, Ascendas India Trust (a-iTrust) achieved distributable income of $22.2 million for the half year ended Sept 30, beating its estimate by 17 per cent.
Its distribution per unit for the period was 2.95 cents, giving an annualised yield of 5 per cent based on its initial public offer price of $1.18 per unit.
Its net property income touched $28.7 million, 66 per cent higher than the year-ago period and 18 per cent better than forecast.
a-iTrust has a diversified portfolio of four IT parks in Bangalore, Chennai and Hyderabad.
Over the first half year, 700,000 square feet of space within the portfolio of operating buildings was renewed or leased, at higher average rental rates than before. The overall occupancy rate of a-iTrust’s portfolio was 99 per cent as at Sept 30.
Ascendas Property Fund Trustee, the trustee-manager of a-iTrust, said it expects the trust to deliver the forecast performance for the second half of the year, and hence is confident of at least meeting the DPU forecast of 5.6 cents for the full year.
‘We are pleased to report a strong set of results which has benefited from the vibrant Indian IT-ITES sector, resounding support from the user-clients and the trustee-manager’s proactive asset and portfolio management,’ said the chief executive officer of the trustee-manager, Jonathan Yap. ‘We remain focused to build on the momentum and deliver returns to unitholders.’
The two completing buildings in the a-iTrust’s portfolio - Crest and Vega - have received strong pre-commitment of 73 per cent and 72 per cent of space respectively and income contribution is expected to start in the second half of 2007.
Besides having a right of first refusal from Ascendas Land International to acquire income-accretive business space, the trustee-manager said it is also pursuing acquisition opportunities from the market.
Source : Business Times - 24 Oct 2007