AA Reit's Q4 DPU falls on rise in units

An increase in the number of units of AIMS AMP Capital Industrial Reit (AA Reit) trimmed the overall payout to investors in the fourth quarter.

The trust reported yesterday that distribution per unit (DPU) came in at 2.63 cents, down from 2.78 cents a year earlier. This was partly due to an increase in units from a private placement of 42.1 million in December. DPU for the full year was 10.3 cents, down from 11.05 cents in FY2017.

Excluding the effects from the private placement, DPU for the fourth quarter would have been about 2.75 cents and around 10.46 cents for the full year, the trust said.

Gross revenue for the quarter was $28 million, 8.4 per cent down on the same period a year earlier. This was mainly due to lower rental and recoveries from 20 Gul Way as five phases of the property reverted to multi-tenancy leases. The expiry of the master lease at 3 Tuas Avenue 2 and lower occupancies at 27 Penjuru Lane also weighed on the numbers.

These falls were partially offset by the rental contribution from 30 Tuas West Road as it generated income from Feb 27 last year, and rents from the newly completed property at 8 Tuas Avenue 20, which became income generating in the third quarter.

Gross revenue for the full year fell 2.7 per cent to $116.9 million. Net property income for the quarter fell 11.5 per cent to $17.7 million, and was down 3.8 per cent to $76.4 million for the year.

  • AT A GLANCE

  • GROSS REVENUE: $28 million (-8.4%)

    NET PROPERTY INCOME: $17.7 million (-11.5%)

    DISTRIBUTION PER UNIT: 2.63 cents (-5.4%)

Distribution to unit holders was up 1.2 per cent to $18 million in the quarter, but down 4.4 per cent to $67.4 million for the year.

Separately, the trust's manager, AIMS AMP Capital Industrial Reit Management, said yesterday that assistant fund manager Joanne Loh Li Phing had decided to "pursue other interests". She leaves on July 10.

AA Reit units closed unchanged at $1.39 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 26, 2018, with the headline 'AA Reit's Q4 DPU falls on rise in units'. Print Edition | Subscribe