$11.3m Q3 Distributable Income For Ascendas India

Source : The Business Times, January 24, 2008

ASCENDAS India Trust has reported a distributable income of $11.3 million for the third quarter ended Dec 31, 2007.

Net property income was $15.7 million - 57 per cent higher than the same quarter last year - while DPU was 1.50 Singapore cents over the period.

For the first nine months of the year, the trust reported a DPU of 4.45 cents - representing an annualised yield of 5 per cent over the IPO price of $1.18 per unit.

The trust attributed the strong showing to continued high portfolio occupancy of 99 per cent, rising average rental rate and constant focus on cost efficiency.

Net asset value as at end-December was $857.7 million or $1.14 per unit.

Said chief executive officer of the trustee-manager, Jonathan Yap: 'We are pleased to report the construction completion of two buildings - Vega at The V (Hyderabad) and Crest at International Tech Park Chennai - with a combined 1.1 million sq ft of space.

'The two buildings expanded the trust's portfolio by 31 per cent to 4.7 million sq ft and their combined occupancy is 91 per cent as at Jan 23, 2008.'

The trust said this provides a 'solid foundation to the forecast 22 per cent distributable income increase in the next financial year over the forecast for the current year, as disclosed in the listing prospectus'.

It added that works on additional development are also in progress.

For example, a master plan has been completed to develop 'the balance 2.7 million sq ft of space' in International Tech Park, Bangalore.

Plans are in place to make government approval submission for the first phase of the development.

In addition, the manager aims to add an additional level of growth through acquisition, 'be it through the two first rights of refusal it enjoys or from the market'.

It has a first right of refusal from Ascendas Land International and Ascendas India Development Trust to acquire substantially income-producing business space.

The former is Ascendas' main overseas investment vehicle and the latter is a private fund managed by Ascendas with a target investment value of $1 billion.

Looking ahead, the trust manager said the trust will continue to focus on growing the operating earnings of its assets, optimising its capital structure, and growing the portfolio.

Given the strong nine- month results, it is confident of at least meeting the 5.6 Singapore cents forecast for the current financial year.