The manager of AIMS APAC REIT (AA REIT) has reported a distribution per unit (DPU) of 9.36 cents for the FY2024 ended March 31, 5.9% lower y-o-y.
The lower DPU was due to the enlarged unit base after the REIT’s equity fund raising (EFR) which was completed in July 2023. The number of units in issue stood at 811.0 million in the FY2024, 11.8% higher y-o-y.
Gross revenue rose by 5.9% y-o-y to $177.3 million due to higher portfolio occupancy, strong positive rental reversions as well as high tenant retention rates.
Net property income (NPI) was up by 6.9% y-o-y to $131.0 million.
Distributable income rose by 3.8% y-o-y to $74.3 million.
As at March 31, overall portfolio occupancy stood at 97.8%, 0.2 percentage points lower y-o-y. Weighted average lease expiry (WALE) stood at 5.1 years, up from 4.4 years in the year before.
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Rental reversion for the full year came in at a positive 24.3%, 5.8 percentage points higher y-o-y. The REIT’s tenant retention rate stood at 79.1%, up from the 78.4% in the year before.
Aggregate leverage stood at 32.6%, down from 36.1% in the year before. Interest coverage ratio (ICR) stood at 4.1 times, up from 3.8 times in the year before.
Net asset value (NAV) per unit stood at $1.31 as at March 31, down from $1.37 in the year before.
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“We are pleased to report a strong year of progress, underpinned by our active asset and lease management capabilities. This is reflected in the renewals of industry leading tenants, strong rental reversions, high occupancy rates and progression of our two asset enhancement initiatives (AEIs),” says Russell Ng, CEO of the manager.
He adds that the REIT will undertake “targeted” upgrades to meet the occupational requirements of our master and anchor tenants.
“We have signed a 15-year master lease with a global storage and information management company and in advanced negotiation to secure a global precision engineering and technology group as anchor tenant for a new long term lease for the second project,” says Ng. “Upon completion, the two AEIs will further enhance our portfolio metrics and financial performance for AA REIT unitholders over the long term.”
Looking ahead, Ng says the REIT will continue to consider new AEIs as well as re-development and acquisition opportunities amid the backdrop of tight supply for logistics and high-spec industrial spaces in FY2025.
To George Wang, chairman of the manager, the REIT’s strong asset management capabilities and prudent capital management are the “essential foundations” on which it has built its income resilience.
“With the successful completion of our $100 million EFR in FY2024, our balance sheet remains fortified and we are well placed to capitalise on further growth opportunities. We approach the next financial year with great confidence and are focused on delivering another year of progress,” he says.
The DPU will be paid out on June 24.
Units in AA REIT closed at $1.27 on May 6.
