Aims AMP Capital Industrial Reit's Q3 DPU up 2.2% to 2.83 cents

SINGAPORE - Mainnboard-listed Aims AMP Capital Industrial Reit announced on Thursday (Jan 29) that distribution per unit (DPU) rose 2.2 per cent to 2.83 cents for the third quarter ended Dec 31, 2014, from 2.77 cents a year ago.

Total distribution to unitholders for Q3 rose 21 per cent to $17.7 million from $14.6 million a year ago.

Net property income (NPI) for the quarter grew 9.7 per cent to $20.5 million from $18.7 million for the same period last year, largely due to rental contribution from completed developments at 103 Defu Lane 10 and Phase 2E of 20 Gul Way, and maiden rental contribution from Phase Three of 20 Gul Way.

Gross revenue came up to $29.7 million, up 8.8 per cent from the previous year's $27.3 million, in line with the increase in NPI.

For the third quarter, Aims said it maintained a prudent aggregate leverage of 31.7 per cent, and increased unencumbered assets to 13 properties, with a total value at $527.2 million, representing about 42.9 per cent of the Singapore portfolio of $1.23 billion as at Dec 31, 2014.

The trust has also begun asset enhancements at 1, Kallang Way 2A, at a cost of $2.2 million. This will increase lettable area at the eight-storey light industrial building by 13 per cent, adding warehouse and ancillary space. The forecast annual rental income is expected to rise from $1.07 million to $1.39 million3, providing a rental yield of 9.5 per cent.

In a separate statement on Thursday, Aims announced that the valuation of its 49 per cent interest in Optus Centre in Sydney, Australia, rose by A$10.1 million ($11.2 million) or nearly 5.5 per cent to A$195.02 million as at Dec 31, 2014. The higher valuation was "largely due to compression in the capitalisation rate."