AIMS APAC REIT reports fiscal 1Q net property income rose 18 percent

AIMS APAC REIT, or AA REIT, building at 51 Marsiling Road, Singapore, which is leased to Beyonics.AIMS APAC REIT, or AA REIT, building at 51 Marsiling Road, Singapore, which is leased to Beyonics.

AIMS APAC REIT reported Thursday its fiscal first quarter net property income rose 18.1 percent on-year to S$22.94 million on lower property operating expenses and higher revenue.

Gross revenue for the quarter ended 30 June increased 5.8 percent on-year to S$30.59 million on higher rental and recoveries for the properties at 20 Gul Way and 27 Penjuru Lane, the industrial REIT said in a filing to SGX.

The distribution per unit (DPU) was 2.50 Singapore cents, unchanged from the year-ago quarter, the REIT said.

Property operating expenses fell 19.4 percent on-year in the quarter to S$7.65 million mainly due to accounting changes for recognizing land rent, the filing said.

“Our strategy of actively managing our portfolio of assets to maintain high quality and attractive properties continues to deliver stable and sustainable returns for unitholders,” Koh Wee Lih, CEO of AIMS APAC REIT Management, the REIT’s manager, said in the statement.

“This strategy has seen us unlock value in our portfolio with asset enhancement initiatives and property developments, such as our recent redevelopment at 3 Tuas Avenue 2,” Koh said. “In addition, we have also added a strategic DPU-accretive and yield-accretive asset to the portfolio with the acquisition of Boardriders Asia Pacific HQ, in Gold Coast, Queensland, Australia.”

Portfolio occupancy rose to 94.4 percent at end-June, from 94.0 percent at the end of the previous quarter, the filing said.

In its outlook, the REIT was cautious.

“Due to the ongoing trade conflicts between the U.S. and its key trading partners, the Singapore economy will likely be impacted due to its dependence on trade and manufacturing activities,” the REIT said. “But being a regional hub, Singapore could potentially benefit from
businesses reassessing their supply chains and sourcing locations.”

AIMS APAC REIT has a portfolio of 27 industrial properties, with 25 of them located in Singapore and two in Australia.

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