AIMS APAC REIT reports 1QFY2025 DPU of 2.27 cents, 1.7% lower y-o-y on enlarged base

Felicia Tan
2-min read

The REIT reported higher gross revenue and NPI due to higher rental growth, strong rental reversions and high tenant rates.

AIMS APAC REIT has reported a distribution per unit (DPU) of 2.27 cents for the 1QFY2025 ended June 30, 1.7% lower y-o-y.

The lower DPU is largely attributed to an enlarged base of 811.9 million units during the quarter, 0.3% higher y-o-y.

1QFY2025 gross revenue rose by 9.7% y-o-y to $47.3 million while net property income (NPI) was up by 6.6% y-o-y to $34.4 million. The increases were due to higher rental growth, strong rental reversions and high tenant rates. Rental reversion for the period stood at a positive 12.8% while tenant retention rate came in at 91.3%.

Distributions to unitholders rose by 7.3% y-o-y to $18.4 million.

Portfolio occupancy as at June 30 fell by 0.8 percentage points y-o-y to 97.3% while portfolio weighted average lease expiry (WALE) stood at 5.2 years, up from 4.3 years in the corresponding period the year before.

“We are pleased to report continued strong operating performance, underpinned by our active asset management and portfolio rejuvenation strategy. The securing of a 15-year master lease and 10-year anchor lease ahead of the commencement of the two identified projects reinforces our asset enhancement initiative (AEI) strategy and demand for such space by leading global companies,” says Russell Ng, CEO of the manager. “Once completed, these two assets will generate higher NPI yields of over 7% and deliver long-term sustainable income and capital growth for our unitholders.”

“Against an improving but still uncertain macro outlook, we remain resolute in executing our strategy, building our income resilience and capturing new opportunities for growth. With a solid foundation backed by a strengthened balance sheet and our experienced management team, we look forward to another year of continued progress,” adds George Wang, chairman of the manager.

In its outlook statement, the REIT manager says it remains “confident” in the REIT’s portfolio of high-quality and well-located assets.

“The continued progress of the asset enhancement initiatives demonstrates AIMS APAC REIT’s commitment to its proactive asset management strategy. The revitalisation of the properties will not only provide sustainable long-term income for AIMS APAC REIT but will also improve the asset specifications, property valuation and earnings quality through long-term partnerships with high-calibre tenants in need of modernised industrial and logistics space solutions,” it says in its July 31 statement.

Unitholders will receive their DPUs on Sept 25.

Units in AIMS APAC REIT closed flat at $1.30 on July 30.

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