Aims Apac Reit posts 0.4% higher Q1 DPU of S$0.0228 amid stable operational performance
Distributions to unitholders also grew 1.1% for the period to S$18.6 million
[SINGAPORE] Aims Apac Reit reported on Thursday (Jul 31) a 0.4 per cent increase in distribution per unit (DPU) of S$0.0228 for Q1 FY2026, from S$0.0227 in the same year-ago period.
The distribution will be paid out on Sep 24, with its record date on Aug 11.
Distributions to unitholders also grew 1.1 per cent for the period to S$18.6 million, from S$18.4 million in the corresponding period a year prior.
Revenue stood at S$47.4 million, inching up 0.2 per cent from S$47.3 million in Q1 FY2025.
Net property income fell slightly by 1 per cent year on year to S$34.1 million, however, from S$34.4 million the same period a year before. This was mainly due to temporary vacancy arising from the ongoing asset enhancement initiatives (AEIs) at 7 Clementi Loop compared to the same period last year.
The manager of the Reit in Q1 FY2026 executed seven new and 25 renewal leases, amounting to 67,941 square metres (sq m), which represents 8.8 per cent of the portfolio’s net lettable area. About 119,518 sq m is due for expiry in Q1, of which 61 per cent is in the logistics and warehouse segment.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Positive rental reversions of 5.4 per cent were achieved, primarily driven by the logistics and warehouse segment, which saw a rental reversion of 7.3 per cent.
Portfolio occupancy stood at 93.7 per cent as at Jun 30, down from 97.3 per cent in the same year-ago period. Based on committed leases and excluding the ongoing impact from the AEIs and transitory movements by tenants, the occupancy rate would be 96.5 per cent.
Aggregate leverage was at 28.9 per cent, while its weighted average lease expiry was at 4.4 years. Interest coverage ratio stood at 2.4 times.
Russell Ng, chief executive of the manager, said: “We are pleased to deliver a stable operational and financial performance for the quarter while progressing on our portfolio rejuvenation strategy. We have completed one of two ongoing AEIs which will uplift asset quality, rental income and value. Furthermore, the completed divestment of 3 Toh Tuck Link at a premium will enable the recycling of capital into new growth initiatives.”
The manager had announced on Jun 17 the completion of the divestment of 3 Toh Tuck Link for S$24.4 million, which represented a 32.5 per cent premium over valuation. Net proceeds from the successful divestment will be utilised to repay debt in the interim and recycled into new growth opportunities.
The Reit’s portfolio, in addition, includes around 190 tenants across multiple trade sectors, with 82.3 per cent of gross rental income (GRI) from tenants in defensive industries.
The manager noted that 76.9 per cent of the Reit’s GRI is from Singapore assets, with the remaining coming from long-term leases in Australia.
As such, George Wang, chairman of the manager, also added that Aims Apac Reit’s focus on the Singapore and Australia market has positioned them favourably compared to other markets, amid wider geopolitical headwinds arising from the US tariff trade policies and conflicts in the Middle East and Ukraine, along with rising US debt and inflationary pressures creating a highly uncertain and volatile global environment.
Units of Aims Apac Reit closed 1.5 per cent or S$0.02 higher at S$1.40 on Wednesday.
Copyright SPH Media. All rights reserved.
