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AA Reit DPU dips 2% for Q2 at 2.50 S cents

AIMS AMP Capital Industrial Reit (AA Reit) has posted a second-quarter distribution per unit (DPU) of 2.50 Singapore cents, down 2 per cent from 2.55 Singapore cents for the same period a year earlier.

Gross revenue for the fiscal second-quarter ended Sept 30 was S$29.4 million, down 0.3 per cent. Net property income was 0.5 per cent lower at S$19.3 million.

The Reit manager resolved to distribute a total of S$17.1 million to unitholders, unchanged from the first quarter and 5 per cent higher than for the second quarter last year.

The distribution included a capital distribution of S$0.8 million (0.11 Singapore cent per unit) from distributions remitted from the group’s investment in Optus Centre in Australia. AA Reit’s policy is to distribute at least 90 per cent of its Singapore taxable income for the full financial year. In the second quarter, the Reit manager decided to distribute 99.3 per cent of the Singapore taxable income available for distribution.

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Over the second quarter, AA Reit increased portfolio occupancy to 93.6 per cent from 91.5 per cent for the preceding quarter, above the industrial average of 88.7 per cent, the Reit manager said. It has a weighted average lease expiry of 2.75 years, including forward committed leases.

It executed 14 new and renewal leases for the second quarter, representing 27,086 square metres (4.3 per cent of total net lettable area).

Total debt was 33.6 per cent of total assets at Sept 30. AA Reit has a weighted average debt maturity of 2.9 years with no debt due for refinancing until May 2019.

Net asset value per unit was unchanged at S$1.37 after revaluation of the portfolio’s investment properties as at Sept 30.

AA Reit is redeveloping its property at 3 Tuas Avenue 2 into a modern and versatile ramp-up industrial facility with 52 per cent more gross floor area. NorthTech, located at 29 Woodlands Industrial Park E1, is being upgraded into a more modern and energy efficient facility. Both projects are due for completion in the second half of 2019.