AIMS Apac Reit cuts Q2 DPU by 20% on lower net property income

AIMS Apac Reit's distribution per unit (DPU) fell by 20 per cent to two Singapore cents for its second quarter ended Sept 30, from 2.5 cents a year ago.

This was mainly due to lower net property income (NPI), management fees being paid fully in cash for the quarter, as well as having an amount reserved for distribution to perpetual securities holders, the real estate investment trust's (Reit) manager said in a bourse filing on Tuesday.

Gross revenue was down 0.3 per cent to S$30.5 million for the quarter, from S$30.6 million the year before.

This was mainly due to lower contributions from the conversion from master leases to multi-tenancy leases at the Reit's 1A International Business Park and the expiry of the master lease at 541 Yishun Industrial Park A.

Rental contributions from 3 Tuas Avenue 2 and Boardriders Asia Pacific in Australia partially offset lower contributions from 1A International Business Park and 541 Yishun Industrial Park A, the manager said.

NPI declined 5.2 per cent on the year to S$21.3 million for the quarter, from S$22.5 million.

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Distributions to unitholders dropped 18.9 per cent year on year to S$14.1 million, from S$17.4 million.

The distribution will be paid out on Dec 18, after the record date on Nov 4.

Meanwhile, for the half year ended Sept 30, DPU was down 20 per cent to four Singapore cents versus five cents a year ago, and distributions to unitholders fell 18.8 per cent to S$28.3 million. Gross revenue was 5.6 per cent lower at S$57.7 million, while NPI eased 12.1 per cent to S$40 million.

Koh Wee Lih, chief executive of the manager, said the Reit achieved resilient performance amid global uncertainties.

"Our resilient portfolio, anchored by 50 per cent in the logistics and warehouse sector, has continued to enjoy a high occupancy, well above JTC industrial average," he said.

Notably, the Reit has experienced a "healthy demand" for logistics facilities, arising from pandemic conditions which led to a shift in global supply chains and the resulting additional warehousing needs, Mr Koh added.

Units of AIMS Apac Reit closed flat at S$1.21 on Monday.