SINGAPORE (July 25): The manager of AIMS APAC REIT (AA REIT) has announced distribution per unit (DPU) of 2.50 cents for the 1Q20 ended June, unchanged from a year ago.
Income available for distribution edged up by 1.4% to $17.4 million, from $17.1 million a year ago.
As at end 1Q20, AA REIT’s total units in issue stood at 694.8 million, 1.3% higher than a year ago.
1Q20 gross revenue grew 5.8% to $30.6 million, from $28.9 million a year ago.
This was mainly due to maiden rental contribution from the property at 51 Marsiling Road from April last year, and higher rental and recoveries for the properties at 8 Tuas Avenue 20, NorthTech, 103 Defu Lane 10, and 20 Gul Way.
Property expenses fell 19.4% to $7.6 million, compared to $9.5 million a year ago.
This was mainly due to the adoption of a new accounting standard, which saw land rent excluded from the property operating expenses.
Consequently, net property income (NPI) rose 18.1% to $22.9 million, from $19.4 million a year ago.
AA REIT’s portfolio occupancy increased to 94.4% in 1Q20, above the JTC industry average of 89.3%.
As at end June, cash and cash equivalents stood at $11.7 million.
“To support the development of a quality portfolio, we continue to manage risks and maintain a strong balance sheet to give us the financial flexibility to navigate the continued soft market, as well as optimise returns for our investors,” says Koh Wee Lih, chief executive officer of the manager.
Against a backdrop of macroeconomic uncertainties, the manager says it remains focused on anticipating and adapting to changes by building a diversified and resilient portfolio through unlocking organic growth as well as strategic acquisitions.
It notes that AA REIT has over 500,000 sqft of potential untapped gross floor area from under-utilised plot ratios for future asset enhancement opportunities.
Units in AA REIT closed flat at $1.47 on Wednesday.
