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Monday, October 18, 2010

A-Reit Q3 2010 Quarterly Earnings Report

Q3 2010 results for A-Reit:
Key Points
  • DPU for the quarter is 3.30 cents.
  • Net Property Income increased 3.5% year-on-year to S$83.9million.
  • Positive rental reversion of between 0.6% and 11.6% on lease renewals across most sub-sectors.
  • Upgrade in corporate family rating to “A3” by Moody’s Investors Services.
  • Occupancy rate moderated slightly to 95.3% for the portfolio and 90.5% for the multi-tenanted buildings. 
  • The Manager has identified three asset enhancement opportunities within the portfolio to capitalize on underutilized plot ratio or to enhance the attractiveness of the properties.
    • Redevelopment of 1 Senoko Avenue
    • Asset Enhancement Planned for 10 Toh Guan Road
    • Asset Enhancement for Techview
  • These asset enhancement initiatives are expected to deliver a weighted average yield in excess of 8.5%.
  • Diversified portfolio comprising 92 properties in Singapore with a total asset value of about S$4.9b.
  • As at 30 September 2010, A-REIT’s aggregate leverage was 34.3% with a weighted average cost of funding of 3.92% and an average term of debt maturity of 3.4 years. All of A-REIT’s floating interest rate exposure is hedged into fixed rate for the next 2.9 years.
  • The  Transfer  Books  and  Register  of  Unitholders will be closed at 5.00 pm on 26 Oct 2010 for the purpose of determining unitholders’ entitlements to distribution.  
  • The distribution that will be paid on 26 Nov 2010. 
Author's Note
The DPU of 3.30 cents will be paid on 26 Nov 2010. The DPU was 3.37 cents in the previous quarter.



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