AA Reit's Q2 DPU falls 7.3% to 2.55 cents

 A five storey ramp up warehouse at 20 Gul Way.
A five storey ramp up warehouse at 20 Gul Way.PHOTO: AA REIT

SINGAPORE - AIMS AMP Capital Industrial Real Estate Investment Trust (AA Reit) has announced a 7.3 per cent fall in second-quarter distribution per unit (DPU) to 2.55 Singapore cents.

This came as gross revenue declined 1.3 per cent year-on-year to S$29.5 million for the three months ended Sept 30.

This was mainly due to lower rental and recoveries from 20 Gul Way as four phases of the property reverted to multi-tenancy leases, the Reit manager said. The fall was partially offset by rental contributions from 30 Tuas West Road as it became income producing from February this year.

Net property income for the quarter inched up 0.7 per cent from a year earlier to S$19.4 million.

Distributions to unitholders stood at S$16.3 million, a decrease of 6.9 per cent compared with the same period a year earlier mainly due to temporary differences and other tax adjustments which resulted in lower Singapore taxable income.

The group has a portfolio of 27 industrial properties, 26 of which are located throughout Singapore and one business park property in Macquarie Park, New South Wales, Australia.

The Reit manager said its portfolio occupancy "remained healthy" at 88.8 per cent as at Sept 30, in line with the Singapore industrial average of 88.7 per cent.

AA REIT has one ongoing development project at 51 Marsiling Road which is expected to complete in the third quarter of its current financial year.