Gross revenue grew 4.1% to $217.3 million in 3Q17/18, from $208.6 million a year ago.
This was mainly due to the acquisition of DNV/DSO in Singapore, 52 Fox Drive, Dandenong South in Melbourne, as well as 100 and 108 Wickham Street in Brisbane. The completion of redevelopment works at 50 Kallang since June 2017 also contributed to the increase.
The high revenue was partially offset by the divestment of A-REIT City @ Jinqiao in China as well as 10 Woodlands Link and No. 13 International Business Park in Singapore.
Property operating expenses rose 11.2% to $59.7 million, mainly due to lower property tax expense a year ago arising from retrospective downward revisions in the annual value of certain properties.
Consequently, net property income (NPI) was 1.7% higher at $157.6 million in 3Q17/18, compared to $155.0 million a year ago.
Overall portfolio occupancy rate improved to 91.1% as of Dec 31, 2017, compared to 90.2% a year ago.
As at end December, cash and cash equivalents, including a bank overdraft amounting to approximately $30.3 million, stood at a deficit of $7.0 million.
“Although the market remains highly competitive, we were able to achieve higher revenue and net property income by acquiring good quality assets, streamlining our portfolio and maintaining good tenants,” says Manohar Khiatani, non-executive director of the manager, on behalf of the board.
Looking ahead, the manager says Ascendas REIT’s performance for FY17/18 is expected to remain stable.
Units of Ascendas REIT closed 2 cents lower at $2.75 on Thursday.
