Singapore-based Ascendas India Trust (a-iTrust), which focuses on real estate investment in India, has posted a 12 percent year-on-year decline in net income to S$17 million in the third quarter ended 31 December 2010.
The decline was attributed to lower-than-usual real estate expenses because of the reversal of doubtful debt provision and a retrospective increase in electricity tariffs at the International Tech Park in Bangalore (ITPB).
The trust’s distributable income for Q3 also dropped seven percent to S$13.2 million over the same period in 2009.
“We are pleased to report that the occupancy rate of a-iTrust’s existing portfolio remains strong and ended the quarter at 98 percent,” said Jonathan Yap, CEO of the trust’s manager, Ascendas Property Fund Trustee Pte Ltd.
The trust’s operating portfolio grew by 25 percent or 1.2 million sq ft in December, with the completion of Zenith, an IT multi-tenant building (MTB) at the International Tech Park Chennai (ITPC), and Park Square, a retail mall in ITPB.
The trust’s portfolio is also set to increase by 0.5 million sq ft with the completion of Voyager, the first building in the Special Economic Zone (SEZ) in ITPB, by the mid 2011.
”As always, we remain active in exploring expansion opportunities, be it via additional development or third-party acquisitions, with the aim to continually provide yield accretion to unit holders,” said Mr. Yap.
Going forward, the company has proposed to develop around 1.7 million sq ft of new space, he said, adding that another 2.5 million sq ft of space could also be developed in the portfolio, which is located mainly in ITPB’s SEZ.