Aims Apac Reit posts 18.8% rise in H1 DPU to S$0.0475
AIMS Apac Real Estate Investment Trust's (AA Reit) O5RU distribution per unit (DPU) rose by 18.8 per cent to 4.75 Singapore cents for the first half ended Sep 30, 2021, from 4 cents a year ago.
DPU for the second quarter ended Sep 30 was 2.5 cents, up from 2 cents a year ago.
Gross revenue was up 13 per cent to S$65.2 million for the half-year period, from S$57.7 million a year ago.
This was mainly due to the rental contribution of 7 Bulim Street, and higher gross revenue from 20 Gul Way, 8 and 10 Pandan Crescent and 541 Yishun Industrial Park A, where the rental contribution from the new master tenant commenced in January 2021, the Reit's manager said in a bourse filing on Wednesday (Oct 13).
Net property income (NPI) grew 19.4 per cent on year to S$47.7 million for the half year, from S$40 million.
Distributable income rose 18.9 per cent on year to S$33.6 million from S$ 28.3 million.
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The distribution will be paid out on Dec 17, after the record date on Oct 27.
The chief executive officer-designate of AA Reit's manager Russell Ng noted that the Reit's asset base is driven by the logistics and warehouse sector.
He said: "Looking ahead, we are committed to seeking out quality assets that align with our investment criteria, which include stable income, annual rental escalations, long-term capital appreciation and redevelopment potential."
In Q2 FY2022, the manager executed 26 new and renewal leases representing 45,722 square metres or 6.2 per cent of its total net lettable area. As at Sep 30, the Reit's portfolio occupancy stood at 97.3 per cent, while its weighted average lease expiry stood at 3.98 years.
The manager said it expects the healthy committed occupancy will be sustained by strong demand for logistics and warehouse facilities amid e-commerce, stockpiling and shifts in supply chains.
It most recently announced that it would acquire the headquarters of Australian supermarket and grocery chain Woolworths for A$463.3 million (S$454 million), which is located in Sydney. The property will be acquired at an initial NPI yield of 5.17 per cent. Its lease is also subject to a balance lease term of 10 years and rental escalation of 2.75 per cent per annum, which the Reit expects will provide it with long-term income stability.
Units of the Reit closed flat at S$1.46 on Tuesday.
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