A-Reit's Q2 Distribution Income Up 15%

Source : The Business Times, October 17, 2008

Ascendas Real Estate Investment Trust (A-Reit), Singapore's No. 1 industrial property trust, said on Friday that its second- quarter income distribution to shareholders increased 15 per cent as its tenants paid higher rents.

The trust will distribute S$53.4 million, or 4.01 cents a share, for the three months ended September, from S$46.5 million, or 3.51 cents a year earlier, it said.

Net property income for 1HFY2008/09 increased by 20.4 per cent to S$142.3 million compared to a year ago, of which 46.7 per cent is contributed organically by rental rate increases from both positive rental reversions in the multi-tenanted buildings and stepped rental increases in the single-tenanted buildings.

Despite the slowdown in the economy, barring any significant further deterioration in the economic situation resulting from the global financial turmoil, the manager expects to be able to deliver a return that is in line with its recent performance for the balance of the current financial year.'

As at 30 September 2008, A-Reit has 76.7 per cent of its debt hedged into fixed rate for the next 3.93 years.

Barring any further deterioration in the external economic environment, the manager believes that A-REIT is well-positioned to deliver a DPU for the current financial year that is in line with its recent performance.