Aims Apac Reit posts 12.5% rise in Q1 DPU to 2.25 S cents
AIMS Apac Reit O5RU 's distribution per unit (DPU) rose by 12.5 per cent to 2.25 Singapore cents for its first quarter ended June 30, 2021, from two cents for the same period a year ago.
Gross revenue of the real estate investment trust (Reit) was up 16.8 per cent to S$31.8 million for the quarter, from S$27.2 million a year ago.
The growth was mainly contributed by new leases at its recently acquired 7 Bulim Street property, and higher rental and recoveries from two of its other properties, 20 Gul Way, and 8 and 10 Pandan Crescent, the Reit's manager said in a bourse filing on Wednesday.
Net property income grew 23.9 per cent on year to S$23.1 million, from S$18.6 million.
Distributable income rose 12.6 per cent on year to S$15.9 million from S$14.1 million.
The Reit's manager expects the distribution will be paid out on Sept 22, after the record date on Aug 6.
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Chief executive of the Reit's manager Koh Wee Lih noted that the Reit's portfolio, focused in the warehouse and logistics sector, has seen high resilience in the quarter due to positive demand for logistics and warehouse spaces amid the pandemic.
Chairman of the Reit's manager George Wang said: "We will continue to evaluate total return investment opportunities in our core markets of Singapore and Australia which offer sustainable income yield and good capital growth potential."
"Additionally, to expand our focus across a greater range of assets that offer different risk and return profiles, we will also continually seek new capital and business partners as we move ahead," Mr Wang added.
In the quarter, the manager said it successfully executed 38 new and renewal leases representing 72,715 square metres (sq m) or 9.8 per cent of total net lettable area, to lead to a portfolio occupancy of 95.7 per cent and a weighted average lease expiry (WALE) of 3.98 years, as at June 30.
It expects its occupancy rate will be sustained "as strong demand for logistics and warehouse facilities continue to be underpinned by e-commerce, stockpiling and shifts in supply chain".
In January, the Reit also announced the acquisition of a property at 315 Alexandra Road for S$102 million.
The manager added it will also continue to be "prudent and selective" with the Reit's cash flow, with priority granted to crucial asset enhancements and deferment of non-critical capital expenditure. Aggregate leverage of Aims Apac Reit is at 34.3 per cent.
The Reit also separately announced that it would change the reporting of its financial results to a half-yearly basis, with its next announcement being for the six-month period ending Sept 30, 2021.
It will, however, still pay distributions to unitholders on a quarterly basis, the manager said.
Units of Aims Apac Reit closed flat at S$1.55 on Wednesday.
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