AIMS APAC REIT distribution per unit slips 5.9% YoY in FY2024

On the other hand, net property income grew 6.9% YoY.

AIMS APAC REIT Management Limited said distribution per unit for fiscal year 2024 (FY 2024) ending 31 March declined 5.9% to $9.36 from the previous year’s $9.94.

The manager associated this with the enlarged unit base following the Equity Fund Raising which was completed in July 2023. 

Meanwhile, the distributions to unit holders rose 3.8% year-on-year (YoY) to $74.3m. 

Gross revenue also grew by 5.9% YoY to $177.3m backed by higher portfolio occupancy and strong positive rental reversions, as well as high tenant retention rates. The REIT’s net property income also increased 6.9% YoY to $131m.

In FY2024, AIMS APAC REIT Management executed 17 new and 48 renewal leases. These are equivalent to 231,837 square metres, representing 29.8% of the portfolio’s net lettable area.

The rental reversion rate was also strong at 24.3%, which was underpinned by 31.7% reversion for the fourth quarter fueled by the logistics and warehouse segment. 

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The manager said 18.1% of leases by gross rental income are due for renewal in FY2025, of which 12.7% are from the logistics and warehouse segment. 

As of 31 March, portfolio occupancy stood at 97.8%. The manager said this is supported by 191 tenants, with 82.4% of gross rental income from those in the defensive industries.

“In line with our portfolio revitalization strategy, we will undertake targeted upgrades to meet the occupational requirements of our master and anchor tenants,” AIMS APAC REIT Management CEO Russell Ng said.

He said a 15-year master lease with a global storage and information management company has been signed and negotiations are ongoing to secure a global precision engineering and technology group as an anchor tenant for a new long-term lease for a second project.

Ng said these two Asset Enhancement Initiatives (AEI) will enhance the REIT’s portfolio metrics and financial performance over the long term. 

“Looking ahead into FY2025, against the backdrop of tight supply for logistics and high-spec industrial spaces, we will continue to evaluate new AEIs, re-development and acquisition opportunities, to enhance returns and unlock further value for Unitholders,” he added.