AIMS AMP Reit's Q1 DPU up 7.8%

Koh Wee Lih, CEO of AA Reit.
Koh Wee Lih, CEO of AA Reit. PHOTO: AIMS AMP CAPITAL INDUSTRIAL REIT

SINGAPORE - Mainboard-listed AIMS AMP Capital Industrial Reit (AA Reit) posted a distribution per unit (DPU) of 2.75 cents for the first quarter of financial year 2016, up 7.8 per cent from 2.55 cents for the year-ago period.

For the three months ended June 30, the trust saw gross revenue grow 10.7 per cent year-on-year to $30.3 million, while net property income rose 3.7 per cent to $20.2 million.

Said Mr Koh Wee Lih, CEO of the Reit's mamager: "We secured 15 new and renewal leases this quarter at a weighted average rental increase of 5.9 per cent on the renewals. We also continued to maintain a high occupancy of 96.1 per cent for the portfolio - above the industrial average of 91.0 per cent."

AA Reit gave a cautious outlook for the industrial market for its current financial year, saying "most industrialists are expected to stay cost sensitive and exercise prudence on their real estate requirements in second half 2015."

"In addition, given the reported near term supply, there may be short term impact on occupancy and rentals."