AIMS AMP Reit posts 1.1% rise in Q2 DPU

SINGAPORE - AIMS AMP Capital Industrial Reit announced on Thursday (Oct 29) a 1.1 per cent rise in distribution per unit (DPU) to 2.8 cents for the second quarter ended Sept 30 from 2.77 cents for the year-ago quarter.

This came on the back of a 3 per cent year-on-year increase in distribution to unitholders to $17.8 million for the quarter.

Gross revenue in the quarter rose 10.6 per cent year-on-year to $31.3 million while net property income was up 5 per cent to $20.7 million.

The group has a portfolio of 26 industrial properties, 25 of which are in Singapore and one business park property in Australia.

Said Mr Koh Wee Lih, CEO of the Reit's manager: "Despite the challenging market, we've managed to sustain our growth momentum through active portfolio management, prudent capital management and our focus on developing a strong and high quality assets portfolio with a diverse mix of quality tenants."

During the quarter, the Reit secured 13 new and renewal leases at a weighted average rental increase of 4.7 per cent on the renewals. It said it had also improved occupancy to 96.5 per cent from 96.1 per cent for the portfolio - well above the industrial property average of 90.8 per cent.

Mr Koh added: "To further unlock value within the portfolio, we have commenced asset redevelopment at 30 & 32 Tuas West Road. This project is tracking on time and within budget, and is targeted for completion in January 2017. Once completed, the forecast annual rental income is expected to rise four-fold from $0.82 million to $4.15 million."