Aims Apac Reit’s (AA Reit) distribution per unit (DPU) fell 10.2 per cent to S$0.0471 for the second half ended Mar 31 on an enlarged unit base, from S$0.05244 the year before.
Gross revenue for the second half grew 7.4 per cent to S$90.4 million, led by higher rental and recoveries from the Reit’s logistics and warehouse, as well as industrial properties, said its manager on Tuesday (May 7).
Topline was, however, partially offset by lower income from the divestment of 541 Yishun Industrial Park A and lower revenue from Australian properties due to the weakening of the Australian dollar against the Singapore dollar.
Net property income (NPI) for the period was up 8.7 per cent on the year to S$66.7 million. The NPI margin increased to 73.7 per cent in H2 FY2024 from 72.9 per cent in H2 FY2023, the manager said.
Distribution to unitholders for the half year rose 0.8 per cent, or S$0.3 million, to S$38.2 million on the year. This was driven by higher net property income, partially offset by higher property expenses and higher marketing services commissions incurred in the period.
The distribution will be paid out on Jun 24, after the record date on May 16.
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Meanwhile, for the full FY2024, DPU was 5.9 per cent lower at S$0.0936 despite 3.8 per cent higher distributions to unitholder of S$74.3 million, owing to the enlarged unit base after equity fundraising was completed last July. Full-year NPI was 6.9 per cent higher at S$131 million.
Gross revenue rose by 5.9 per cent year on year to S$177.3 million for FY2024, supported by higher portfolio occupancy and strong positive rental reversions on top of high tenant retention rates.
Russell Ng, chief executive of the manager, noted that AA Reit will conduct targeted upgrades to meet the occupational requirements of our master and anchor tenants, in line with its portfolio revitalisation strategy.
“We have signed a 15-year master lease with a global storage and information management company and are in advanced negotiation to secure a global precision engineering and technology group as an anchor tenant for a new long-term lease for the second project,” said Ng, adding that the two ongoing asset enhancement initiatives (AEIs), upon completion, will further enhance the Reit’s portfolio metrics and financial performance over the long term.
“Looking ahead into FY2025, against the backdrop of tight supply for logistics and high-spec industrial spaces, we will continue to evaluate new AEIs, re-development and acquisition opportunities to enhance returns and unlock further value for unitholders.”
Units of AA Reit : O5RU 0% closed S$0.02 or 1.6 per cent higher at S$1.27 on Monday.
