A-Reit's Q3 results improve on acquisitions, project completions

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Ascendas Real Estate Investment Trust (A-Reit) recorded better results for the third quarter ended 31 December 2011, attributed to higher rental income from the completion of projects, as well as acquisitions since December 2010.

The trust said that gross revenue for Q3 climbed 15.7 percent year-on-year to S$127.3 million, while net property income rose 11.6 percent to S$93.9 million. The increase, however, was offset by higher operating costs due to higher electricity charges and land rent.

Meanwhile, Tan Ser Ping, Chief Executive Officer and Executive Director of Ascendas Funds Management (S) Ltd, the manager of the trust, said Phase 1 of the asset enhancement project at 10 Toh Guan Road has been completed, creating a showroom with excellent frontage.

“More than half of the space has been pre-committed by a leading lifestyle company resulting in an estimated return of about 12 percent (based on this pre-commitment) on the Phase 1 investment.”

The trust also ventured into a new asset enhancement project at 9 Changi South Street 3 to create additional lettable area and to enhance the marketability of the property. Tan noted that the manager is also committed to a forward purchase of a business park property in Shanghai, China for a purchase consideration of approximately S$117.6 million.

Looking ahead, the trust will “continue to seek to further enhance its portfolio and footprint in the business space and industrial property arena, with the portfolio comprising predominantly Singapore-based assets in the foreseeable future,” said the manager.

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