AIMS Apac Reit posts 20% drop in Q1 DPU to two S cents

AIMS Apac Reit's distribution per unit (DPU) fell by 20 per cent to two Singapore cents for its first quarter ended June 30, 2020, from 2.5 Singapore cents a year ago.

Gross revenue was down 10.9 per cent to S$27.2 million for the quarter, from S$30.6 million a year ago, according to results released by the real estate investment trust's (Reit) manager on Thursday.

Net property income (NPI) decreased 18.8 per cent on the year to S$18.6 million for the quarter, from S$22.9 million.

The drop in gross revenue and NPI was mainly due to an estimated provision for waiver of rent of about S$2.6 million, and lower contributions from 1A International Business Park and 20 Gul Way due to the conversion from master leases to multi-tenancy leases.

It was also due to the expiry of two phases of the master lease at 30 Tuas West Road and the master lease at 541 Yishun Industrial Park A.

The drops were partially offset by rental contribution from Boardriders Asia Pacific HQ - which was acquired in July 2019, as well as the full-quarter rental contribution from the recently completed property at 3 Tuas Avenue 2.

Distributions to unitholders declined 18.6 per cent year on year to S$14.1 million, from S$17.4 million.

The distribution will be paid out on Sept 17, after a record date of Aug 4.

Koh Wee Lih, chief executive of the manager said the Reit achieved a stable performance amid the headwinds brought by Covid-19. This was mainly due to its large base of tenants in essential services which comprise over 50 per cent of the portfolio by gross rental income.

While the Reit manager faced challenges in leasing activities during the "circuit-breaker" period, it is experiencing increased interest for industrial space, especially for logistics and warehouse facilities, as economies reopen and businesses recommence operations.

This is largely driven by the e-commerce trends which have accelerated during this Covid-19 period, Mr Koh said.

Units of the Reit closed S$0.01 or 0.8 per cent lower at S$1.21 on Wednesday.