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AIMS AMP Capital Industrial REIT (AA REIT) saw its distribution per unit (DPU) for the second quarter that ended on 30 September 2017, where it showed an increase of 2.0 percent quarter-on-quarter to 2.55 cents.
Gross revenue fell 3.2 percent to $29.5 million, while net property income (NPI) dropped 3.6 percent to $19.4 million.
For the first half of FY2018, DPU declined by 8.2 percent year-on-year to 5.05 cents. Gross revenue increased 1.5 percent to $60 million, while NPI dipped 0.4 percent to $39.5 million.
In an SGX filing, the trust’s manager revealed that it successfully executed 17 new and renewal leases during the quarter, which represents 7.4 percent of the net lettable area.
This brings AA REIT’s overall portfolio occupancy at 88.8 percent, which is in line with the city-state’s industrial average of 88.7 percent.
“As at 30 September 2017, 81.4 percent of the portfolio’s interest rate is fixed taking into account interest rate swap contracts and fixed rate notes,” it said.
“Overall blended funding cost is at 3.6 percent. Aggregate leverage is at 37.3 percent while weighted average debt maturity on a pro forma basis is 2.3 years with no debt due for refinancing until November 2018.”
AA REIT’s redevelopment at 8 Tuas Avenue 20 achieved Temporary Occupation Permit (TOP) in August 2017, while a tenant for the ground floor was secured in September 2017 for a 10-year period with rent escalations during the term.
Its development at 51 Marsiling Road, on the other hand, is “pre-committed to a 10-year master lease term with Beyonics International Pte Ltd with rent escalations”. The greenfield build-to-suit development is set to be completed in Q3 FY2018.
Looking ahead, AA REIT will remain “focused on managing risks through prudent capital management and to optimise the portfolio through sector and tenant diversification across its portfolio of 27 properties”, said the trust’s manager.
This article was edited by Keshia Faculin.
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