AA REIT net property income up 19.4% to $47.8m

Distribution to shareholders also saw an increase by 18.9% to reach $33.6m.

AIMS APAC REIT Management Limited reported in a media release that AIMS APAC REIT (AA REIT) had  an increase in their net property income by 19.4 % to reach $47.8m for 1H FY 2022.

The company also reported an increase in their distribution to shareholders, as an 18.9% y-o-y increase was seen. This reached $33.6m in the same period.

A DPU of 4.75 cents in the same period also represents an 18.8% increase from the previous DPU of 4.00 cents in 1H FY2021. Meanwhile, the DPU for 2Q FY2022 is 2.50 cents, which is a 25% increase from the DPU of 2 cents in 2Q FY 2021. 

This performance was kept up by higher net property income, which jumped by 19.4% to $47.7m from the $40m in the same period. 

Meanwhile, 1H FY2022 gross revenue was at $65.2m, $7.5m higher than the value in 1H FY2021. This was due to the rental contribution of 7 Bulim Street and overall higher revenue from 20 Gul Way, 8 & 10 Pandan Crescent and 541 Yishun Industrial Park A. 

Russell Ng, CEO-designate, AA REIT, also credited this performance to the geographical diversity of their assets and their logistics and warehouse sector, which makes up over half of their portfolio. He also points to the proposed acquisition of Woolworths HQ as their investment into Australia, which would strengthen the company’s presence in Sydney’s business park market. 

The company also executed 26 new and renewal leases making up 45,722 sqm, or 6.2% of total net lettable area. As of September 30, 2021, AA REIT’s portfolio occupancy was 97.3%, while weighted average lease expiry was at 3.98 years.

Also as of September 30, 2021, AA REIT has a cash balance of around $108.3m and undrawn committed facilities of $151.8m. In July 2021, the company also secure commitments of up to $220m and $99.40m (A$100m) dedicated to refinancing several of its secured debt facilities due in 2021 and 2022.