AA Reit DPU for Q2 flat at 2.5 S cents

AIMS Apac Reit (AA Reit) on Tuesday posted a distribution per unit (DPU) of 2.5 Singapore cents for its second quarter ended Sept 30, unchanged from the year-ago period.

Gross revenue was up 4 per cent to S$30.6 million for the quarter, from S$29.4 million last year. 

This was mainly due to the maiden rental contribution from its recently acquired property, Boardriders Asia Pacific HQ in Gold Coast, Australia, as well as higher rental and recoveries for the properties at NorthTech, 20 Gul Way, 8 Tuas Avenue 20 and 1 Bukit Batok Street 22.

Nonetheless, the increase was partially offset by lower rental and recoveries for the property at 27 Penjuru Lane, as well as the conversion of one phase of the property at 30 Tuas West Road to multi-tenancy leases, the manager said. 

Net property income (NPI) jumped 16.6 per cent to S$22.5 million, from S$19.3 million a year ago, mainly attributable to higher gross revenue and lower property operating expenses. 

As a result, NPI margin increased to 73.5 per cent for Q2 2020, versus 65.6 per cent for the year-ago quarter. 

Distributable income rose 1.7 per cent to S$17.4 million, from S$17.1 million previously. 

For Q2 2020, the manager is distributing 97.9 per cent of the Singapore taxable income available for distribution to unitholders. This distribution will be paid on Dec 20, after books closure at 5pm on Nov 13. 

For the six months ended Sept 30, DPU was flat at five Singapore cents, unchanged from a year ago, while distributable income grew 1.5 per cent to S$34.8 million. 

Gross revenue was up 4.9 per cent to S$61.2 million, while NPI rose 17.3 per cent to S$45.4 million for the half year. 

Koh Wee Lih, chief executive of the manager, said: "Our strategy of active portfolio management has delivered another quarter of stable distribution, despite the challenging operating environment.

"This quarter we successfully completed the strategic acquisition of Boardriders Asia Pacific HQ and continued to progress the asset enhancement initiative at NorthTech. We will continue to pursue opportunities to grow the portfolio, unlock value and future-proof AA Reit, in line with our strategy."

Units in AA Reit closed at S$1.38 on Monday, down 0.7 per cent, or one Singapore cent.