Aims Apac Reit posts 1.7% lower Q1 DPU of S$0.0227
Net property income increases 6.6% to S$34.4 million
AIMS Apac Reit’s (AA Reit) distribution per unit (DPU) fell 1.7 per cent to S$0.0227 for the first quarter of FY2025, from S$0.0231 in the corresponding period a year ago.
The real estate investment trust’s (Reit) manager said that this was mainly due to enlarged units following the equity fundraising, which was completed in the second quarter of FY2024.
In a business update on Wednesday (Jul 31), the Reit’s manager noted that Q1 revenue for the year grew 9.7 per cent to S$47.3 million, from S$43.2 million in the same period for FY2024.
Net property income (NPI) for the period was up 6.6 per cent on the year to S$34.4 million. This was driven by sustained rental reversions of 12.8 per cent for the quarter, which was underpinned by strong growth mainly from the logistics and warehouse segment.
Higher rental growth, as well as high tenant retention rates, had also boosted revenue and NPI for Q1.
In Q1 FY2025, there were four new and 12 renewal leases, totalling 36,993 square metres. This represents 4.8 per cent of the portfolio’s net lettable area.
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Distribution to unitholders for Q1 FY2025 increased 7.3 per cent to S$18.4 million, from S$17.2 million in the previous year. The distribution will be paid out on Sep 25, after the record date on Aug 12.
As at Jun 30, AA Reit’s overall portfolio occupancy was 97.3 per cent, with an aggregate leverage of 33.1 per cent and interest coverage ratio of 4.1 times.
Weighted average debt maturity was at 2.1 years, while the long portfolio weighted average lease expiry was 5.2 years.
The manager added that about 74 per cent of its borrowings, which include forward interest rate swaps, are hedged into fixed rates.
Additionally, 74 per cent of the expected Australian dollar distributable income is hedged into the Singapore dollar, providing stable and predictable income for the Reit.
The manager also noted that it is making progress on its two identified asset enhancement initiatives (AEI) – one in Clementi, and the other at Tai Seng.
The AEI project drive in Tai Seng involves upgrading of the industrial property to attract tenants. The manager said that it has secured engineering and techology group Accuron Technologies on a 10-year lease, which will commence in the third quarter of FY2025.
Chief executive officer of the manager Russell Ng said: “The securing of a 15-year master lease and a 10-year anchor lease ahead of the commencement of the two identified projects reinforces our AEI strategy and demand for such space by leading global companies.”
He added: “Once completed, these two assets will generate higher NPI yields of over 7 per cent and deliver long-term sustainable income and capital growth for our unitholders.”
Units of AA Reit closed flat at S$1.30 on Tuesday.
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