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AA Reit unveils DPU of 2.77 cts for Q2, up 0.7% from a year ago

AIMS AMP Capital Industrial Reit (AA Reit) unveiled on Thursday a distribution per unit (DPU) of 2.77 cents for its fiscal second quarter ended Sept 30, 2014, up 0.7 per cent from the DPU of 2.75 cents a year ago.

Net property income rose 8.2 per cent year-on-year to S$19.7 million; its distribution to unitholders rose 19.2 per cent to S$17.3 million.

The second quarter result reflected the first partial contributions from its newly completed developments at 103 Defu Lane 10 and its Phase 2 Extension of 20 Gul Way.

Stable contribution from its investment in Optus Centre in Sydney was also reflected in the share of joint venture's results. In addition to new development and investment income, the trust achieved rental increases for renewals averaging 8.6 per cent.

Its managers said that while there remained some pressure in the industrial property sector with occupancy moderating, they were cautiously optimistic for the rest of the year.

Its managers said: "The trust's portfolio is also well diversified across sectors and property types, with logistics & warehousing, telecommunications and pharmaceutical/ health care/ cosmetics as the top three tenant types.''

They added that with an average debt maturity of 2.9 years, they had full flexibility with debt and capital management, and did not expect to be materially impacted by interest-rate movements.

Of the group's portfolio of 26 industrial properties, 25 are located across Singapore and one, a business park, in Sydney, Australia.