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AIMS AMP Capital Industrial Real Estate Investment Trust (AA Reit) announced a 1.8 per cent drop in distribution per unit (DPU) from a year ago to 2.75 Singapore cents for the second fiscal quarter ended Sept 30.
Gross revenue was down 4.3 per cent year on year at S$29.91 million mainly due to lower rental contributions for the properties at 27 Penjuru Lane, 8 and 10 Pandan Crescent and 11 Changi South Street 3 as well as the loss in revenue due to the redevelopment of 30 and 32 Tuas West Road and 8 and 10 Tuas Avenue 20.
Net property income slipped 6.9 per cent to S$19.27 million in line with lower gross revenue.
AA Reit has a portfolio of 26 industrial properties, 25 of which are located throughout Singapore and one business park property in Macquarie Park in New South Wales, Australia.
During the quarter, it secured 17 new and renewal leases, representing 13,193.8 sq m or 2.2 per cent of net lettable area. Portfolio occupancy stood at 92.7 per cent as at Sept 30, above Singapore's industrial property average of 89.4 per cent.
"Our top priority is tenant retention as part of our active lease management strategy, while we continue to explore opportunities to unlock organic growth and seek risk-adjusted yield accretive investments," said the Reit manager's chief executive officer, Koh Wee Lih.
The distribution date for the fiscal Q2 payment is Dec 22, with the book closure date on Nov 8.