AA REIT DPU jumps 41.5% to 2.90 cents

Its distribution to unitholders also increased to $20.5m.

The AIMS APAC REIT (AA REIT) reported its distributions per unit (DPU) increased 41.5% year-on-year to 2.90 cents for the fourth quarter ended March 2021, compared to 2.05 cents in the previous quarter.

The distributions to unitholders amounted to $20.5m, which is 45% or $6.4m higher YOY.

AA REIT noted this brings the total DPU to 8.95 cents and the cumulative distributions to unitholders to $63.2m, which is lower by $3.3m compared to 2020.

The decrease was attributed to the lower net property income and management fees paid fully in cash, but partially offset by the full release of the Australian distributable income of $2.9m.

The REIT’s gross revenue rose by $3.8m to $122.6m, largely due to the full year contribution from Boardriders Asia Pacific HQ, newly redeveloped 3 Tuas Avenue 2 and 7 Bulim Street.

“Backed by our active asset management strategy, our portfolio occupancy has increased to 95.4% from 89.4% a year ago, taking into consideration the recent accretive acquisition at 7 Bulim Street,” REIT Manager’s CEO Koh Wee Lih said.

“We continue to see high resiliency across our portfolio, underpinned by quality assets, with over 50% of tenants in the essential services.” Lih noted the expansion of the AA REIT’s capacity is also being explored.

During the quarter, a total of 37 new and renewal leases were executed, involving 103,965 sqm. or 14% total net lettable area.“The high occupancy is expected to be sustained, as strong demand for logistics and warehouse facilities continue to be underpinned by e-commerce, stockpiling and shifts in supply chain,” the REIT Manager also said.