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AA Reit Q2 DPU down 7.3% at 2.55 S cents
AIMS AMP Capital Industrial Reit (AA Reit) posted a drop in DPU to 2.55 Singapore cents for second-quarter 2018, down 7.3 per cent from a year ago.
Gross revenue also fell 1.3 per cent from the year-ago period to S$29.51 million, mainly due to lower rental and recoveries from 20 Gul Way as four phases of the property reverted to multi-tenancy leases.
Net property income inched up 0.7 per cent from the previous year to S$19.4 million, while distribution to unitholders fell 7 per cent to S$16.32 million in the same period.
Chief executive of the Reit's manager AIMS AMP Capital Industrial Reit Management Limited, Koh Wee Lih, said that the Singapore industrial property market still remains soft, with the oversupply continuing to exert downward pressure on rentals and occupancy.
"Our focus moving forward is on managing capital and risk, and building a higher quality portfolio through asset enhancement initiatives and acquisitions," said Mr Koh.
AA Reit added that it achieved portfolio occupancy of 88.8 per cent, and that it received a temporary occupancy permit (TOP) for its three-storey industrial facility at 8 Tuas Avenue 20 on Aug 29, while construction for its build-to-suit greenfield development at 51 Marsiling Road is on budget and due for completion in the third-quarter of fiscal 2018.
AA Reit's portfolio comprises of 27 industrial properties, of which 26 are in Singapore, and a business park in Macquarie Park, New South Wales, Australia.
The distribution date for the second-quarter payment is Dec 21, with the books closure date on Nov 6.