[SINGAPORE] Aims Apac Real Estate Investment Trust’s (AA Reit) distribution per unit (DPU) for the second quarter of the 2027 financial year ended September rose 5.4 per cent year on year to S$0.02571, from S$0.0244.
On a quarter-on-quarter basis, Q2 DPU rose 10 per cent from S$0.02337, said the AA Reit manager in a bourse filing on Thursday (Oct 15). The quarterly performance was supported by higher revenue, contributions from recent acquisitions and lower financing costs.
The Q2 distribution, comprising a taxable income distribution of S$0.02411 per unit and a capital distribution of S$0.0016, will be paid on Dec 11, following the record date of Oct 28.
For the first half of the year, the Reit posted a DPU of S$0.04908, up 4 per cent from S$0.0472 in the corresponding year-ago period.
Distributions to unitholders increased 4.9 per cent year on year to S$40.5 million, from S$38.6 million.
Revenue for H1 rose 8.5 per cent year on year to S$101.6 million, compared with S$93.7 million previously. Net property income (NPI) grew 11.1 per cent on the year to S$75.9 million, from S$68.4 million.
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The increase in revenue and NPI was driven mainly by higher rental income and recoveries from logistics, warehouse and industrial properties, revenue contributions from acquisitions including Hazelmere in Western Australia and 2 Aljunied Avenue 1 in Singapore, as well as the strengthening of the Australian dollar against the Singapore dollar.
This was partially offset by the loss of revenue following the divestment of 8 Senoko South Road in Singapore in April 2026 for S$15 million.
As at Sep 30, overall portfolio occupancy stood at 93.7 per cent, or 95.1 per cent based on committed leases. The portfolio achieved a positive rental reversion of 5.7 per cent on renewed leases, with a tenant retention rate of 73.6 per cent.
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AA Reit’s aggregate leverage stood at 37.4 per cent as at end-September, up from 26.8 per cent as at Mar 31. Its blended debt funding cost decreased to 3.9 per cent from 4.2 per cent a year ago, while weighted average debt maturity increased to 3.8 years. Its interest coverage ratio was 2.8 times.
During the quarter, the trust redeemed its S$250 million 5.375 per cent subordinated perpetual securities, refinancing them with lower-rate perpetual securities at a blended rate of 4.16 per cent to save about S$3 million annually.
Lim Joo Lee, CEO of the manager, noted that the results were “supported by completed rejuvenation works, acquisitions and proactive refinancing initiatives that continue to enhance unitholder value”.
Units of AA Reit fell 1.4 per cent to close S$0.02 lower at S$1.39 on Wednesday.