AIMS AMP Reit posts 1.8% drop in fiscal Q2 DPU

SINGAPORE - AIMS AMP Capital Industrial Real Estate Investment Trust (AA Reit) reported a 1.8 per cent dip in in distribution per unit (DPU) to 2.75 Singapore cents for the three months to Sept 30 from 2.80 cents for the year-ago quarter.

Gross revenue for the quarter declined 4.3 per cent to S$29.91 million, while net property income fell 6.9 per cent to S$19.27 million. This was due to lower rental contributions for the properties at 27 Penjuru Lane, 8 and 10 Pandan Crescent and 11 Changi South Street 3 as well as the loss in revenue due to the redevelopment of 30 and 32 Tuas West Road and 8 and 10 Tuas Avenue 20.

During the quarter, AA Reit secured 17 new and renewal leases, representing 13,193.8 square metres or 2.2 per cent of net lettable area. It said portfolio occupancy remains strong at 92.7 per cent, above Singapore's industrial property average of 89.4 per cent.

Said Mr Koh Wee Lih, CEO of the Reit manager: "We're pleased to maintain stable returns for investors this quarter, despite challenging market conditions persisting."

"Our top priority is tenant retention as part of our active lease management strategy, while we continue to explore opportunities to unlock organic growth and seek risk-adjusted yield accretive investments. We also continue to manage risk through a prudent capital management and diversification across our portfolio of 26 properties."