SINGAPORE (Apr 25): The manager of AIMS AMP Capital Industrial REIT (AA REIT) has reported 4Q18 DPU of 2.63 cents, 5.4% lower than 2.78 cents recorded in 4Q17.
This brings FY18 DPU to 10.3 cents, 6.8% lower than 11.05 cents in FY17.
Distribution to unitholders came in at $18.0 million, 1.2% higher than $17.8 million last year.
Gross revenue dropped 8.4% to $28.0 million compared to $30.6 million in the previous year, mainly due to lower rental and recoveries from 20 Gul Way as five phases of the property reverted to multi-tenancy leases, the expiry of the master lease at 3 Tuas Avenue 2 and lower occupancies at 27 Penjuru Lane.
This was partially offset by rental contribution from 30 Tuas West Road as it became income producing from Feb 27 2017 and the rental contribution from newly completed property at 8 Tuas Avenue 20 as it became income producing in 3Q18.
Property operating expenses also saw a 2.5% dip to $10.4 million from $10.6 million a year ago
Hence, net property income for the quarter was $17.7 million, 11.5% lower than $20.0 million in 4Q17.
During the quarter, the REIT recorded a profit in net change in fair value of investment properties and investment properties under development of $2.08 million, compared to a loss of $54.6 million a year ago.
The group’s total return after income tax for 4Q18 was $20.7 million, compared to a loss of $39.2 million in 4Q17.
Koh Wee Lih, CEO of the manager says, “Even as we work to stay ahead of current market situations, we continue to position ourselves for further growth opportunities and create sustainable earnings for our Unitholders.”
Units in AA REIT last traded 2 cents lower at $1.39.
