AA Reit's Q3 DPU down 2.8% to 2.77 cents

AIMS AMP Capital Industrial Reit (AA Reit) on Thursday announced a 2.8 per cent decrease in distribution per unit (DPU) to 2.77 Singapore cents for its third quarter ended Dec 31, 2016, down from 2.85 Singapore cents a year ago.

This came on the back of a 6.7 per cent fall in gross revenue from S$32.5 million last year to S$30.4 million this year, due mainly to lower rental contributions for the properties at 27 Penjuru Lane, 8 &10 Pandan Crescent as well as the loss in revenue due to the redevelopment of 8 & 10 Tuas Avenue 20.

This was partially offset by higher rental and recoveries for the property at 29 Woodlands Industrial Park E1.

Net property income slipped 6 per cent, from S$21 million a year ago to S$19.8 million. AA Reit said this was in line with lower gross revenue, and higher property expenses from higher expenditure to maintain its properties.