Aims Apac Reit posts 4.8% fall in H2 DPU to S$0.0471

AIMS Apac Reit : O5RU 0% posted a 4.8 per cent fall in its distribution per unit (DPU) to S$0.0471 for its second half ended Mar 31, from S$0.0495 a year ago, as distributions to unitholders declined 3.8 per cent on year to S$33.6 million for the period, from S$35 million.

The distributions fell largely due to the distributions related to the S$250 million perpetual securities issued in September 2021 for the acquisition of retail company Woolworths’ headquarters in Australia, the manager said on Wednesday (Apr 27).

Meanwhile, gross revenue was up 18.9 per cent to S$77.1 million for the half-year period, from S$64.9 million a year ago, while net property income (NPI) for the period also rose 16.6 per cent on year to S$55.5 million, from S$47.6 million.

The distribution for the quarter from Jan 1 to Mar 31 will be paid out on Jun 24, after the record date on May 10.

As for the full-year period, DPU was up 5.7 per cent on year to S$0.0946, from S$0.0895 a year ago.

Its manager said the performance was underpinned by resilient operations of the real estate investment trust’s (Reit) business park, and logistics and warehouse properties, a continued recovery of the industrial sector, as well as its acquisition of Woolworths HQ.

Distributions to unitholders grew 6.3 per cent on year to S$67.2 million for the full-year period. Gross revenue was also 16.1 per cent higher at S$142.4 million, while NPI rose 17.9 per cent to S$103.2 million.

Chairman of the manager George Wang said: “Strategically, we will continue to look for opportunities that offer good investment returns and long-term capital growth, as well as consider recycling assets to generate sustainable income growth for our unitholders.”

As at Mar 31, the Reit’s portfolio occupancy stood at 97.6 per cent, while weighted average lease expiry stood at 5.05 years.

It expects to sustain its healthy portfolio occupancy, as demand for industrial space will likely be supported by resilient e-commerce and logistics sectors as well as Singapore’s border and economy reopening, the manager said.

Units of Aims Apac Reit closed flat at S$1.43 on Tuesday.