AIMS Apac Reit : O5RU 0% (AA Reit) posted an 11.3 per cent increase in its distribution per unit (DPU) to S$0.05244 for the second half of the year ended Mar 31, 2023, from S$0.04710 last year.

The real estate investment trust’s (Reit) gross revenue was S$84.2 million, up 9.1 per cent from S$77.1 million the previous year. 

This was mainly due to full-year revenue contribution from the acquisition of Woolworths’ headquarters in Australia, and higher rental and recoveries from the Reit’s logistics and warehouse, hi-tech and industrial properties, said its manager on Friday (May 5). 

Net property income (NPI) increased 10.6 per cent to S$61.4 million for the half year, from S$55.5 million. 

AA Reit’s manager noted that the higher revenue was offset by an increase in property operating expenses. 

Distributable income rose 12.7 per cent to S$37.9 million, from S$33.6 million. This was largely due to higher revenue contribution across the Reit’s portfolio. 

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The distribution will be paid out on Jun 28, after the record date on May 15. 

Meanwhile, for FY2023, AA Reit’s DPU was 5.1 per cent higher at S$0.09944, versus S$0.09460 previously, and distributable income grew 6.5 per cent to S$71.6 million. 

Gross revenue was 17.6 per cent higher at S$167.4 million, while NPI rose 18.7 per cent to S$122.5 million. 

The Reit’s portfolio occupancy increased to a record high of 98 per cent on increased occupancy in its logistics and warehouse segment.

As at Mar 31, the Reit owns 29 properties valued at S$2.2 billion, with a weighted average lease to expiry of 4.4 years. 

Chief executive of AA Reit’s manager Russell Ng said: “Looking ahead, our markets remain attractive and continue to offer abundant growth opportunities despite market headwinds.

“We are actively reviewing opportunities within our portfolio to drive organic growth, which includes adding value through active lease management to secure higher contracted rents, to underpin our future earnings.”

Units of AA Reit closed up S$0.03 or 2.2 per cent at S$1.39 on Thursday.