The manager of AIMS APAC REIT (AA REIT) has reported a distribution per unit (DPU) of 2.31 cents for the 1QFY2024 ended June, 1.3% higher y-o-y.
The REIT’s applicable number of units rose by 12.8% y-o-y to 809 million due to the equity fund raising (EFR) that was conducted during the quarter.
Distributable income rose by 5.1% y-o-y to $17.2 million.
Gross revenue rose by 4.5% y-o-y to $43.2 million while net property income (NPI) rose by 4.2% y-o-y to $32.3 million. The increases were mainly due to higher rental income from the REIT’s properties in Singapore and offset by higher finance costs.
As at June 30, portfolio occupancy stood at 98.1% while the REIT’s weighted average lease expiry (WALE) stood at 4.3 years. During the period, the REIT’s rental reversion came in at a positive 38.0%.
Aggregate leverage for the same period stood at 32.9% with 87% of the REIT’s borrowings on fixed rates.
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“We are pleased to report another set of strong operating results, including strong double-digit rental reversion and higher occupancy driven by our active asset management and strong leasing performance. Despite the market headwinds, we continue to see sustained demand for high quality assets from the advanced manufacturing and logistics sectors. We remain confident in the performance of our portfolio but are alert to macroeconomic headwinds such as rising interest rates and ongoing inflationary pressures,” says Russell Ng, CEO of the manager.
“With the completion of our recent fund raising, AA REIT’s balance sheet is well fortified. By adopting a prudent and conservative capital management strategy amid an uncertain macro environment, AA REIT is well positioned to continue building on its strong foundations to grow and deliver long-term sustainable returns for unitholders,” adds George Wang, chairman of the manager.
Unitholders will receive a distribution of 0.51 cents per unit for the period from June 12 to June 30, on Sept 22. An advanced distribution of 1.8 cents per unit was paid for the period from April 1 to June 11 on July 20.
Units in AA REIT closed flat at $1.24 on July 26.
