Ascendas REIT’s net property income up 5.6% to $114.6m in Q3

But property expenses spiked 24.6%.

Higher property expenses marred Ascendas REIT’s otherwise solid results. The group reported that its net property income increased 5.6% year-on-year to $114.6m in the third quarter, backed by an 11.2% growth in revenue to $171.7m.

However, OCBC noted that Ascendas REIT’s 1.4% DPU growth was adversely impacted by the 24.6% spike in its property expenses.

“Property operating expenses spiked up by 24.6% to S$57.1m due to higher property tax and other property expenses incurred following the conversion of certain properties from single-tenanted to multi-tenanted lease structures. As a result, DPU grew by a mild 1.4% YoY to 3.59 S cents,” stated OCBC