26 January 2018
Ascendas Reit - Outlook for FY17/18
In Singapore, island-wide vacancy rate of industrial properties remained at about 11% as at
31 December 2017. Ascendas Reit’s Singapore occupancy rate fell by 1.3% from 90.1% in
the previous quarter due to the increasing supply and stronger competition for quality
tenants.
Year-to-date, three properties in Singapore have been divested for total proceeds of S$60.8
million. This is in line with the Manager’s proactive asset management strategy to redeploy
capital and optimise returns for Unitholders.
In Australia, two suburban offices at 100 and 108 Wickham Street in Brisbane were
separately acquired. This helps to diversify Ascendas Reit’s portfolio geographically and
improves earnings stability from its long leases and quality tenants. The Australia portfolio
currently comprises 31 properties with a total value of S$1.5 billion.
The Singapore economy grew by 3.5% y-on-y in 2017 and is forecast to grow by 1.5% to
3.5% in 2018. The growth is supported by the manufacturing sector as well as externally oriented
sectors such as wholesale trade, transportation & storage and finance & insurance
(source: Ministry of Trade and Industry).
Consensus GDP growth forecast for Australia in 2017 and 2018 is 2.3% and 2.8%
respectively (source: Bloomberg). Non-mining business investment continues to support
growth as Australia transitions away from commodity investment.
There is a general consensus that the global economic outlook has generally improved.
However, downside risks include geopolitical tensions and a potential increase in trade
protectionist policies.
Ascendas Reit’s performance for FY17/18 is expected to remain stable.
31 December 2017. Ascendas Reit’s Singapore occupancy rate fell by 1.3% from 90.1% in
the previous quarter due to the increasing supply and stronger competition for quality
tenants.
Year-to-date, three properties in Singapore have been divested for total proceeds of S$60.8
million. This is in line with the Manager’s proactive asset management strategy to redeploy
capital and optimise returns for Unitholders.
In Australia, two suburban offices at 100 and 108 Wickham Street in Brisbane were
separately acquired. This helps to diversify Ascendas Reit’s portfolio geographically and
improves earnings stability from its long leases and quality tenants. The Australia portfolio
currently comprises 31 properties with a total value of S$1.5 billion.
The Singapore economy grew by 3.5% y-on-y in 2017 and is forecast to grow by 1.5% to
3.5% in 2018. The growth is supported by the manufacturing sector as well as externally oriented
sectors such as wholesale trade, transportation & storage and finance & insurance
(source: Ministry of Trade and Industry).
Consensus GDP growth forecast for Australia in 2017 and 2018 is 2.3% and 2.8%
respectively (source: Bloomberg). Non-mining business investment continues to support
growth as Australia transitions away from commodity investment.
There is a general consensus that the global economic outlook has generally improved.
However, downside risks include geopolitical tensions and a potential increase in trade
protectionist policies.
Ascendas Reit’s performance for FY17/18 is expected to remain stable.
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