Ascendas India Trust reports 32% growth in DPU to 1.98 cents for 2Q19

Ascendas India Trust reports 32% growth in DPU to 1.98 cents for 2Q19

PC Lee
24/10/18, 05:54 pm

SINGAPORE (Oct 24): The trustee-manager of Ascendas India Trust (a-iTrust) has declared a 2Q19 DPU of 1.98 cents, 32% higher than a year ago despite the depreciating Indian Rupee.

The higher DPU was mainly due to incremental income contributions from the acquisitions of BlueRidge 2 and Arshiya warehouses, the Atria building, higher interest income from investments in AURUM IT SEZ, aVance 5 & 6 and aVance A1 & A2 via construction funding and positive rental reversions, along with a one-off gain from the scrap sale of the Dedicated Power Plant at ITPB.

Ascendas India Trust to acquire two buildings in Navi Mumbai for $186 mil

As at Sept 30, a-iTrust’s committed portfolio occupancy remained robust at 97% while gearing ratio was 32%.

Based on its current gearing limit of 45%, the trust has total debt headroom of $477 million. Out of the Trust’s total borrowings, 84% are effectively on a fixed-interest rate basis and 62% were hedged into Indian Rupees.

In July, a-iTrust entered into a forward purchase agreement to acquire two buildings, aVance A1 & A2, with total leasable area of 1.9 million sf in aVance Business Hub 2 in Hyderabad.

This follows its signing of a master agreement in May with the vendor to acquire five buildings in aVance Business Hub 2, a Special Economic Zone adjacent to aVance Business Hub.

a-iTrust has also received in-principle approval to redevelop The V. This planned redevelopment will increase leasable area by 3.5 million sf over the next seven to 10 years.

Phase I of the redevelopment entails constructing a new building with a total floor area of 1.4 million sf to replace the existing Auriga building and the auditorium and is expected to be completed by the second half of 2021.

In Bangalore, construction of a new 0.5 million sf building is underway, and is expected to complete by the first half of 2019. A second building with total floor area of 0.7 million square feet is being planned.

Year to date, units of a-iTrust have fallen 7% to close at $1.06 on Wednesday.

Right timing: STI stays intact, but Hong Fok is at extreme overbought high

SINGAPORE (Mar 23): Although quarterly momentum appears ambivalent as it is consolidating beneath its own moving average, prices are intact. They have established support at the confluence of the 50- and 200-day moving averages which are moving into an increasingly positive stance at 3,217 and 3,186 respectively. The index may well be able to regain its 50-day moving average as short term stochastics is turning up from the bottom of its range. Since medium term indicators are neutral and drifting sideways, short term indicators could keep the STI afloat. However the range is likely to be ....

EY Singapore launches 18th edition of Entrepreneur Of The Year awards

SINGAPORE (Mar 22): The search has started for the 18th EY Entrepreneur Of The Year, as part of the bid to promote entrepreneurship and shape a new role model for the business community. Ernst & Young LLP, organiser of the annual awards, observes that entrepreneurs in Singapore, and the world, have built some of the world’s most enduring companies. The businesses they build don’t just create employment and contribute to the GDP. “Their creativity, tenacity and courage serve as an inspiration for many. In many ways, the way they overcome the odds, the power of their influence, a....

Challenger Tech's 2.94% shareholder says offer price too low, calls for higher dividend payouts

SINGAPORE (Mar 22): Pangolin Investment Management, which holds a 2.94% stake in Challenger Technologies through its Pangolin Asia Fund, is calling on other shareholders to reject Digileap Capital’s delisting offer at the company’s upcoming EGM.   Pangolin says the offer price of 56 cents per share, which translates to a price-to-earnings ratio of 9.9 times, is too low and thus unfair to minority shareholders. In a letter sent to The Edge Singapore on Friday, Pangolin explains its reasons for strongly advising other Challenger shareholders to reject the offer, which it deems “....