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AIMS AMP Capital Industrial REIT’s distributable income for Q3 FY2015 rose 2.7 percent to S$17.72 million from S$17.25 million in the previous quarter, and 21 percent jump from the S$14.64 million recorded in the same period a year ago, the company announced in an SGX filing Thursday, 29 January.
Consequently, distribution per unit (DPU) also increased to 2.83 cents from 2.77 cents in both the past three months and a year ago.
This brought the distributable income for the first three quarters of FY2015 to S$50.83 million from S$41.61 million in the corresponding period in FY2014, while DPU edged up to 8.15 cents from 8.02 cents previously.
“We delivered a solid result this quarter, increasing distribution to unitholders by 21.0 percent year-on-year to S$17.7 million and improving net property income by 9.7 percent to S$20.5 million compared to the same period last year,” said Koh Wee Lih, CEO of the REIT’s manager.
“This Q3 result reflected rental contribution from our completed developments at 103 Defu Lane 10 and Phase 2E of 20 Gul Way, as they became income producing from 1 August and 14 August 2014 respectively.”
The first rental contribution from Phase Three of 20 Gul Way also pushed up the net property income, while renewals of leasing agreements achieve higher rental prices averaging 9.2 percent, he noted.
Another highlight for the quarter is the trust’s acquisition of five more unencumbered assets in addition to its existing eight. It now has a total of 13 unencumbered properties with a combined value of S$527.2 million. This accounts for about 42.9 percent of the current total appraised value of S$1.23 billion for its Singapore portfolio as of 31 December 2014.
“To further unlock value within the portfolio, we have commenced asset enhancements at 1 Kallang Way 2A for a modest investment of S$2.2 million. This project will increase lettable area at the eight-storey light industrial building by 13 percent, adding warehouse and ancillary space. The forecast annual rental income is expected to rise from S$1.07 million to S$1.39 million (assuming full occupancy),” added Koh.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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