AIMS AMP Reit Q3 DPU up 0.7% to 2.85 cents

SINGAPORE - AIMS AMP Capital Industrial Reit (AA Reit) on Thursday announced a distribution per unit (DPU) of 2.85 cents for its third quarter, up from 2.83 cents a year ago.

Gross revenue for the three months to Dec 31 came in at $32.5 million, an increase of 9.5 per cent from $29.7 million in the previous year.

In a stock exchange filing, the trust manager said net property income rose by 2.7 per cent to about $21.1 million, while distribution to unitholders climbed 2.2 per cent to $18.1 million.

However, the share of results of joint venture (net of tax) declined sharply by 76.8 per cent to $3.5 million in the third quarter.

The share of results of joint venture (net of tax) comprised contribution from the group's 49 per cent interest in Optus Centre, which is located in Macquarie Park in Australia.

The trust manager said the lower contribution in this quarter was mainly due to the share of revaluation surplus of S$11.2 million recognised from the valuation of Optus Centre included in the third quarter of the 2015 financial year.

AA Reit has a portfolio of 26 industrial properties, 25 of which are located throughout Singapore and one business park property Australia.

During the quarter, the trust secured 18 new and renewal leases, representing 23,276.3 sqm at a weighted average rental increase of 0.6 per cent on the renewals. The trust maintained portfolio occupancy of 93.4 per cent - above the industrial property average of 90.8 per cent.

The trust manager noted that the industrial property market is expected to continue to remain challenging and AA REIT remains cautious on the outlook of the industrial market

and will continue to proactively manage the trust's lease expiries.

"With a diverse tenant base across a range of sectors, and a good mix of master and

multi-tenant leases, we are better placed to manage rental risks in the current challenging market," said AIMS AMP Capital Industrial REIT Management chief executive Koh Wee Lih.