AA Reit posts flat Q3 DPU of 2.5 Singapore cents

Singapore

AIMS Apac Reit's (AA Reit) distribution per unit (DPU) for the third quarter ended Dec 31 amounted to 2.5 Singapore cents, unchanged from a year ago.

Gross revenue was down 1.2 per cent at S$29.5 million for the quarter, from S$29.8 million previously, it said in a statement on Friday.

This was mainly due to the conversion from master leases to multi-tenancy leases at its 1A International Business Park and one phase of the 30 Tuas West Road property.

AA Reit also saw lower rental and recoveries at 20 Gul Way and 15 Tai Seng Drive. The final phase of 20 Gul Way had reverted from a master lease to multi-tenancy leases during Q3.

The fall in gross revenue was partially offset by full-quarter rental contribution from Boardrisers Asia Pacific HQ - an Australia property which was recently acquired.

Net property income (NPI) grew 18.8 per cent on the year to S$23.1 million for the quarter, from S$19.4 million. This was mainly from lower property operating expenses which were partially offset by lower gross revenue.

Distributions to unitholders rose 2.1 per cent year on year to S$17.6 million, from S$17.2 million.

The Q3 distribution will be paid out on March 26, after books closure on Feb 10.

As at Dec 31, AA Reit's aggregate leverage was 35.2 per cent.

AA Reit units closed at S$1.46 on Friday, up three Singapore cents, or 2.1 per cent.