AIMS APAC Reit posts 45% rise in Q4 DPU to 2.9 S cents

O5RU : O5RU 0% saw a 45 per cent boost to its distribution per unit (DPU) to 2.90 Singapore cents in Q4 FY2021 ended March this year, from two cents in Q4 FY2020.

Gross revenue for Q4 2021 was up 16.1 per cent at S$32.8 million, from S$28.2 million in Q4 2020.

This was due to contributions from the recently acquired property at 7 Bulim Street, higher rental and recoveries for the properties at 3 Tuas Avenue 2, 20 Gul Way and 27 Penjuru Lane. The Reit manager said that the increase was partially offset by lower rental and recoveries from the properties at 15 Tai Seng Drive and 103 Defu Lane 10.

The estimated Additional Rental Relief for eligible tenants under the Singapore rental relief framework of S$1.7 million had also partially offset the gross revenue for this quarter, the manager added. 

Net property income for Q4 2021 stood at S$24 million, S$3.5 million higher compared to Q4 2020 due to higher gross revenue. The manager added that the Reit released the balance Australian distributable income of S$1.1 million in this quarter previously retained in Q4 FY2020. 

Distributions to unitholders for Q4 2021 were S$20.5 million, noted AIMS APAC Reit. This brings the total FY2021 DPU to 8.95 Singapore cents. 

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The distribution will be paid out on June 24, after the record date of May 14.

The Reit's portfolio occupancy rose to 95.4 per cent, from 89.4 per cent a year ago. This is due to the accretive acquisition at 7 Bulim Street, said the manager in a filing on Wednesday. Its weighted average lease expiry stands at 3.95 years. 

In Q4 FY2021, AIMS Apac Reit executed 37 new and renewal leases representing 103,965 square metres or 14 per cent of total net lettable area. It reported that 52.2 per cent of its gross rental income was contributed by logistics and warehouse segments. 

The manager expects high occupancy to be sustained as demand for logistics and warehouse facilities continues to be underpinned by e-commerce, stockpiling and shifts in supply chain. 

As at March 31 this year, the Reit's aggregate leverage was 33.9 per cent. 

Commenting on the Reit's performance for FY2021, chief executive officer of the manager Koh Wee Lih said: "Looking ahead, we are actively exploring the expansion of AA REIT's capacity to further strengthen partnerships with our stakeholders, including existing and potential investors, capital and operational partners, and tenants.

"This will further diversify the REIT's capital sources, investment allocation and partnership opportunities, which will result in improved occupancy across the portfolio and enhanced growth for the future."

Units of AIMS APAC Reit closed 1.5 per cent or S$0.02 higher at S$1.39 on Wednesday, after the announcement.