SINGAPORE (July 26): The manager of AIMS AMP Capital Industrial REIT’s (AA REIT) reported 1Q19 DPU of 2.50 cents, unchanged from 1Q18.
1Q19 total distributable income came in at $17.1 million. 7.1% higher than the $16 million posted a year ago.
Gross revenue for the quarter was $28.9 million, 5.2% lower than $30.5 million a year ago.
This was mainly due to lower rental and recoveries from 20 Gul Way as five phases of the property reverted to multi-tenancy leases, lower occupancies at 27 Penjuru Lane and 1 Bukit Batok and loss of revenue from 10 Soon Lee Road following the divestment of the property on March 29.
As property operating expenses dropped 8.6% y-o-y to $9.49 million, net property income (NPI) came in at $19.4 million, 3.4% lower than $20.1 million in the previous year.
During the quarter the trust recorded gains from net change in fair value of derivative financial instruments of $0.39 million compared to a loss of $1.09 million a year ago.
Cash and cash equivalents as at 30 June 2018 stood at $12.4 million.
On the outlook, the trust will continue to focus on active asset and lease management and to optimise its portfolio through sector and tenant diversification across its portfolio of 26 properties, supported by a prudent capital management approach.
Koh Wee Lih, CEO of the manager, says, “In addition to building a quality portfolio, our focus is also on managing risks and keeping a strong balance sheet in the current soft market, as well as optimising returns for our investors.”
Units in AA REIT last traded 1 cent lower at $1.41 on Wednesday.
