AIMS APAC REIT (AA REIT) has reported a distribution per unit (DPU) of 4.670 cents for the 1HFY2025 ended Sept 30, 0.4% higher y-o-y. During the period, AA REIT had a higher base of 813.6 million units, 0.4% higher y-o-y.
1HFY2025 gross revenue and net property income (NPI) increased by 7.7% y-o-y and 5.1% y-o-y to $93.5 million and $67.6 million respectively driven by strong rental reversions.
Distributions to unitholders rose by 5.0% y-o-y to $38.0 million.
As at Sept 30, the REIT’s portfolio occupancy rate stood at 95%, down from 98.1% as at Sept 30, 2023. Its weighted average lease expiry (WALE) stood at 5 years, up from 4.2 years in the year before.
Rental reversion stood at a positive 16.9% with contributions from the 11 new and 29 renewal leases executed during the period. The new and renewal leases total 82,623 sqm (889,346.57 sq ft) representing 10.6% of the portfolio’s net lettable area (NLA).
AA REIT’s tenant retention rate stood at 78.6% as at Sept 30, up from 70.1% in the year before.
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The REIT’s aggregate leverage stood at 33.4%, up from 32.1% in the year before with an undrawn committed facilities and cash and balances of some $305.9 million. As at Sept 30, it had borrowings on fixed rates at 74%, lower than last year’s 77%. The REIT’s expected Australian dollar (AUD) distributable income hedged into Singapore dollars (SGD) is at 74% as at Sept 30, up from 70% as at Sept 30, 2023.
“We are pleased to report a strong set of financial and operational results driven by our active asset management, portfolio rejuvenation strategy and disciplined capital management. Evidenced by our ongoing asset enhancement initiatives (AEIs), we remain committed to developing a high-quality portfolio that drives consistent DPU growth and overall distributions to unitholders,” says Russell Ng, CEO of the manager.
“With the new sustainability-linked loan (SLL) facility in place, we remain well positioned to advance our environmental, social and governance (ESG) commitment and capture further organic and acquisition opportunities,” he adds, referring to the REIT’s new unsecured SLL of up to $400 million and A$150 million ($130.3 million) announced on Sept 16.
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George Wang, chairman of the manager said the REIT’s “strategic portfolio selection and positioning continues to be the foundation of [its] income resilience”.
“Backed by our robust balance sheet, we are well-positioned to grow [our] unitholder’s value through strategic investments that deliver risk-adjusted returns and sustainable long-term income. As the macro environment continues to improve, we are confident of our continued growth and progress,” he adds.
Looking ahead, the REIT manager sees transaction volumes of multiple-user factory spaces and warehouses in Singapore gaining momentum with demand for quality industrial space from international firms seeking safe and resilient locations for expansion.
In Australia, the REIT’s two business parks in Sydney, located within Macquarie Park and Bella Vista, will continue to benefit from the government’s infrastructure investments. For instance, the extension of Sydney’s Metro line, which opened on Aug 19, will connect the city’s northwest region through its central business district (CBD). Macquarie Park and Bella Vista have also been identified as a priority high growth area under the Transport Oriented Development (TOD) programme which aims to deliver more local residential areas and enhance the vibrancy of the existing precinct.
Furthermore, the Brisbane Olympic and Paralympic Games in 2032 is likely to benefit the REIT’s property in the Gold Coast area with A$7.1 billion earmarked for infrastructure investments in Queensland.
In its outlook statement, the manager says it remains “optimistic” of the REIT’s portfolio of high-quality and well-located assets and underpinned by its commitment to execute its four strategic pillars of disciplined investments, active asset management, prudent capital and risk management and conducting strategic partnerships.
The record date for DPUs is Nov 14 while unitholders will receive their distributions on Dec 24.
Units in AA REIT closed at $1.27 on Nov 4.
