Aims Apac Reit Q1 DPU up 1.3% to S$0.0228

AIMS Apac Real Estate Investment Trust’s (AA Reit) distribution per unit (DPU) rose by 1.3 per cent to S$0.0228 in the first quarter of FY2023, from S$0.0225 in the year-ago period.

Gross revenue was up 29.8 per cent to S$41.3 million in Q1, from S$31.8 million a year ago, while net property income (NPI) grew 34.3 per cent to S$31 million, from S$23.1 million last year.

This was due to contributions from Australian supermarket and grocery chain, Woolworths Headquarters, which was completed on Nov 15, 2021, as well as higher rental income from existing properties, the industrial Reit’s manager said in a regulatory filing on Tuesday (Jul 26).

The higher revenue was however offset by higher operating expenses, distributions to perpetual securities holders, higher interest expense and management fees following the acquisition of Woolworths Headquarters, AA Reit added.

Meanwhile, distributable income gained 2.7 per cent year on year to S$16.3 million, from S$15.9 million.

The distribution is scheduled to be paid out on Sep 23, after books closure on Aug 4.

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As at Jun 30, the Reit has an overall portfolio occupancy of 97.9 per cent, while weighted average lease expiry (WALE) stood at 4.93 years.

It expects the healthy committed occupancy to sustain as demand for industrial space continues to be underpinned by the “resilient e-commerce and logistics sectors” as well as the reopening of Singapore’s borders.

AA Reit’s portfolio is made up of 29 properties — 26 in Singapore and 3 in Australia. They include logistics and warehouses, general industrials, light industrials, business parks as well as 1 high-tech space.

Recently, the Reit tried to acquire the Sime Darby Business Centre along 315 Alexandra Road for S$106.6 million, but was unsuccessful.

The Reit’s units closed 0.7 per cent or S$0.01 higher at S$1.39 on Monday.