AIMS Apac Reit cuts Q4 DPU by 27.3% to S$0.02

AIMS Apac Reit's distribution per unit (DPU) fell by 27.3 per cent to two Singapore cents for its fourth quarter ended March 31, 2020, from 2.75 Singapore cents a year ago.

Gross revenue was down 5.7 per cent to S$28.2 million for the quarter, from S$29.9 million a year ago, according to the real estate investment trust's (Reit) financial results released on Tuesday.

This was mainly due to the conversion from master leases to multi-tenancy leases at its 1A International Business Park in November 2019, the expiry of the final two phases of the master lease at 20 Gul Way, the expiry of the second phase of the master lease at 30 Tuas West Road, as well as lower rental and recoveries for the Reit's 15 Tai Seng Drive property, the manager said.

Net property income (NPI) grew 0.9 per cent on the year to S$20.5 million for the quarter, from S$20.3 million.

Distributions to unitholders declined 25.6 per cent year on year to S$14.1 million, from S$19 million. The Reit had retained S$2.9 million of Australian distributable income in the quarter to conserve cash for working capital purposes in view of the Covid-19 situation. If the S$2.9 million was distributed, DPU for the fourth quarter would have been 2.4 cents.

The distribution will be paid out on June 29, with a record date of May 20.

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Meanwhile, for the full year ended March 31, 2020, DPU was 7.3 per cent lower at 9.5 Singapore cents, versus 10.25 cents a year ago, and distributions to unitholders fell 5.6 per cent to S$66.5 million. Gross revenue was 0.7 per cent higher at S$118.9 million, while NPI rose 13.5 per cent to S$89.1 million for the full year.

The manager said there has been minimal impact to the Reit's operations following the start of Singapore's "circuit-breaker" period as it has been able to continue carrying out critical functions of the portfolio's asset and facility management with reduced onsite staff supporting tenants.

More than 50 per cent of the Reit's Singapore tenants remain open during the "circuit-breaker" period as they are deemed essential services.

Units of the Reit closed S$0.03 or 2.6 per cent higher at S$1.17 on Monday.