reporter2
16-01-13, 12:52
http://www.businesstimes.com.sg/premium/companies/others/reit-sees-little-impact-new-stamp-duty-20130116
Published January 16, 2013
A-Reit sees little impact from new stamp duty
By ong chor hao
THE seller's stamp duty on industrial property which the government introduced as part of its latest property cooling measures is not expected to have a significant impact on Ascendas Real Estate Investment Trust (A-Reit) as it holds its properties for the long term.
A-Reit said this yesterday in a commentary accompanying its financial statements for the third quarter and nine months ended Dec 31, 2012.
But, said A-Reit, the stamp duty could potentially weed out speculators and moderate industrial prices, particularly strata-titled units. The commentary was on how trends and competitive conditions may affect the group over the next 12 months.
The stamp duty introduced is for industrial properties sold within three years of purchase.
A-Reit is Singapore's first listed business space and industrial real estate investment trust which has, as at Dec 31 last year, a diversified portfolio of 101 properties in Singapore and one business park property in China.
Results posted yesterday showed that for the third quarter ended Dec 31, 2012, A-Reit achieved an 11.9 per cent increase in amount available for distribution to $81.1 million and a 4 per cent rise in distribution per unit (DPU) to 3.62 cents.
Tan Ser Ping, CEO of A-Reit's manager Ascendas Funds Management (S), attributed this to organic growth.
Gross revenue grew 14.1 per cent to $145.2 million. This was largely due to the recognition of full quarter rental income from completed projects and new acquisitions made in the previous financial year.
Net property income grew 11.5 per cent to $104.7 million. Continued positive rental reversion was achieved for all segments of its portfolio for renewed leases, A-Reit said.
Net asset value was $1.88 per unit, up from $1.78 a year ago.
For the nine months that ended Dec 31, A-Reit's DPU was 10.68 cents, up 6.2 per cent from the previous year. Income available for distribution was 13.3 per cent higher at $236.7 million. On an annualised basis, the yield comes to 5.74 per cent, based on the closing price of $2.48 for A-Reit yesterday.
A-Reit's aggregate leverage stood at 32.8 per cent, but it expects this to go up to 34.8 per cent by the end of calendar year 2013 after funding committed investments.
The trust also announced yesterday an asset-enhancement initiative for 31 International Business Park that is expected to cost $13.2 million and be completed by the third quarter of this calendar year.
This comes on top of five other such facelifts with an estimated cost of about $82 million undertaken in the current financial year.
"The manager continues to enhance A-Reit's portfolio through asset-enhancement initiatives to boost returns on the portfolio," Mr Tan said.
Published January 16, 2013
A-Reit sees little impact from new stamp duty
By ong chor hao
THE seller's stamp duty on industrial property which the government introduced as part of its latest property cooling measures is not expected to have a significant impact on Ascendas Real Estate Investment Trust (A-Reit) as it holds its properties for the long term.
A-Reit said this yesterday in a commentary accompanying its financial statements for the third quarter and nine months ended Dec 31, 2012.
But, said A-Reit, the stamp duty could potentially weed out speculators and moderate industrial prices, particularly strata-titled units. The commentary was on how trends and competitive conditions may affect the group over the next 12 months.
The stamp duty introduced is for industrial properties sold within three years of purchase.
A-Reit is Singapore's first listed business space and industrial real estate investment trust which has, as at Dec 31 last year, a diversified portfolio of 101 properties in Singapore and one business park property in China.
Results posted yesterday showed that for the third quarter ended Dec 31, 2012, A-Reit achieved an 11.9 per cent increase in amount available for distribution to $81.1 million and a 4 per cent rise in distribution per unit (DPU) to 3.62 cents.
Tan Ser Ping, CEO of A-Reit's manager Ascendas Funds Management (S), attributed this to organic growth.
Gross revenue grew 14.1 per cent to $145.2 million. This was largely due to the recognition of full quarter rental income from completed projects and new acquisitions made in the previous financial year.
Net property income grew 11.5 per cent to $104.7 million. Continued positive rental reversion was achieved for all segments of its portfolio for renewed leases, A-Reit said.
Net asset value was $1.88 per unit, up from $1.78 a year ago.
For the nine months that ended Dec 31, A-Reit's DPU was 10.68 cents, up 6.2 per cent from the previous year. Income available for distribution was 13.3 per cent higher at $236.7 million. On an annualised basis, the yield comes to 5.74 per cent, based on the closing price of $2.48 for A-Reit yesterday.
A-Reit's aggregate leverage stood at 32.8 per cent, but it expects this to go up to 34.8 per cent by the end of calendar year 2013 after funding committed investments.
The trust also announced yesterday an asset-enhancement initiative for 31 International Business Park that is expected to cost $13.2 million and be completed by the third quarter of this calendar year.
This comes on top of five other such facelifts with an estimated cost of about $82 million undertaken in the current financial year.
"The manager continues to enhance A-Reit's portfolio through asset-enhancement initiatives to boost returns on the portfolio," Mr Tan said.