Aims Apac Reit’s DPU rises 10.2% to S$0.0259 in Q3 on higher earnings
AIMS Apac Reit’s distribution per unit (DPU) rose 10.2 per cent to S$0.0259 for the third quarter ended Dec 31, 2022, from S$0.0235 a year ago.
On Wednesday (Jan 25), the real estate investment trust (Reit) manager attributed the performance to higher gross revenue of S$42 million and net property income (NPI) of S$30.9 million. These represented a 14.1 per cent and 14 per cent increase year on year, from S$36.8 million and S$27.1 million, respectively.
The increases in gross revenue and NPI come on the back of higher rental income from Singapore and Australia properties, and full-quarter revenue contribution from the acquisition of Woolworths’ headquarters, which completed on Nov 15, 2021.
The Reit’s distributable income also rose 11.7 per cent to S$18.7 million, from S$16.7 million a year ago.
The distribution will be paid on Mar 24, after books closure on Feb 3.
Despite being mindful of macro uncertainty and market volatility ahead, Russell Ng, the manager’s chief executive, believes Singapore’s industrial market in the near term will continue to be supported by favourable demand and supply dynamics.
Aims Apac Reit will focus on tenant retention and strengthen its portfolio through active asset enhancement, redevelopment, divestment and capital recycling, he said.
The weighted average lease expiry for the Reit’s portfolio was 4.5 years, and its tenant retention rate remained high at 79 per cent.
Units of Aims Apac Reit rose 3.1 per cent or S$0.04 to close at S$1.35 on Jan 25.
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