Allco REIT results exceed forecasts

ALLCO Commercial REIT, a Singapore listed property trust investing in Australian commercial properties, has exceeded its prospectus forecast.

ALLCO REIT posted a distribution to unitholders of $S7.950 million for first quarter of 2007 between the period of January and March.

The result is a 9.0% higher than the forecast of $S7.295 million.

This was attributed to strong rental income growth from the Central Park (Perth) property, additional rental contribution from the acquisition of 55 Market Street, and the redeemable preference share restructure effected in August 2006.

Actual gross revenue achieved was $12.251 million, 7.7% higher than the forecast of $S11.377 million. Net property income was up 4.4% at $10.229 million against the forecast of $S9.797 million.

Allco Singapore’s managing director Nicholas McGrath it has been a robust start for Allco REIT in 2007.

“In 1Q 2007, Allco REIT has outperformed the STI Index with the unit price rising by 16.2%. This positive first quarter result has been largely driven by the pro-active management of the portfolio and the continued strengthening of both the Singapore and Perth office markets,” he added.

As at April 27, 2007, Allco REIT’s market capitalisation has increased to $S616.1 million, providing unitholders with strong total returns since listing. With an annualized DPU of 6.49 cents per unit, this represents an annualised distribution yield of 5.23%, based on the closing price of $S1.24 as at April 27, 2007.

Australian Property Journal