AIMS AMP Capital Industrial Reit raises distribution per unit by 7.4% for Q3 2013

AIMS AMP Capital Industrial Reit will pay 2.77 cents per unit to unitholders for the three months ended Dec 31 last year, a rise of 7.4 per cent compared with the same period a year ago.

Distribution to unitholders increased 26.3 per cent for the Reit's third quarter over a year ago to $14.6 million, the Reit's manager, AIMS AMP Capital Industrial Reit Management, said on Wednesday.

Net property income climbed 26.6 per cent in the period to $18.7 million, while revenue rose 6.1 per cent to $27.3 million.

This was mainly due to rental contributions from the completed redevelopment of 20 Gul Way Phases One and Two, said Mr Koh Wee Lih, the chief executive officer of the Reit's manager.

The Reit secured 12 new and renewed leases in the quarter at a weighted average rental increase of 27.2 per cent. Its occupancy rose to 98.2 per cent.

Mr Koh said the trust the next development phase of 20 Gul Way in September last year, which will add 496,949 sq ft of gross floor area to the site.

"With master tenant CWT Limited leasing the entire floor space, the development is expected to contribute an additional $6.31 million rental income per annum once completed," he said.

In response to concerns about rising interest rates as the United States Federal Reserve dials back its unprecedented bond-buying programme, Mr Koh added that AIMS AMP Capital Industrial Reit has a capital structure that is well-placed to manage these challenges.

The Trust has no debt due for refinancing until October 2015 and 83.5 per cent of its borrowings are on fixed rates, he noted.

The Reit's third-quarter distribution will be paid to unitholders on Mar 27.