SINGAPORE - Aims Amp Capital Industrial Reit (AA Reit) reported lower revenue for the first quarter ended June 30, but distribution to unitholders remained steady amid a challenging business environment.

Gross revenue for AA Reit, which has a portfolio of 26 industrial properties in Singapore and Australia, was down 3.5 per cent year on year to S$29.2 million. Excluding a property tax refund in the period, revenue would be S$30.3 million, AA Reit said in its results announcement on Tuesday (July 26).

Net property income still gained 1 per cent to S$20.4 million, allowing AA Reit to table a distribution per unit of 2.75 Singapore cents, unchanged from a year ago. The DPU was however 6.8 per cent lower compared with last quarter, when there were retained distributions from the previous three quarters.

AA Reit's portfolio occupancy was a healthy 92.7 per cent as of June 39, but it is cautious about the business outlook for the industrial sectors.

"Based on JTC first quarter statistics, overall occupancy rates of Singapore's industrial property market decreased to 90.1 per cent from 90.6 per cent in the preceding quarter… Given the weak economic climate and industrial oversupply situation in Singapore, rents continue to be under pressure," AA Reit said.

AA Reit was flat at S$1.465 as of 10:30am, following the results announcement before the market opened.