AIMS AMP Capital Industrial REIT's property income slid 3%

Blame it on loss of rental income.

According to a release, AIMS AMP Capital Industrial REIT Management Limited as Manager of AIMS AMP Capital Industrial REIT announced a distribution per unit (DPU) of 2.58 cents for the quarter ended 31 December 2012, representing a 3.2 percent increase compared to the previous quarter but a slight decrease of 0.8 percent year on year.

The distribution to unitholders for Q3 FY2013 was S$11.6 million, a 3.5 percent increase from the previous quarter, and a 0.5 percent increase year on year.

The DPU of 2.58 cents represents a payout of 100 percent of taxable income available for distribution, in line with the Manager’s policy to pay at least 90 percent of AA REIT’s taxable income.

AIMS AMP Capital Industrial REIT CEO, Mr Nick McGrath, said: “We are pleased to deliver a DPU of 2.58 cents to unitholders. During the quarter, we reached the significant milestone of achieving the Temporary Occupation Permit for Phase One of 20 Gul Way within budget and ahead of schedule. We expect a full quarter’s rental incom contribution from this asset in the March 2013 quarter. We also renegotiated leases at higher rental rates, prudently managed capital and identified new opportunities to unlock portfolio value, such as the S$25.4 million redevelopment of 103 Defu Lane 10.”

The Trust reported gross revenue of S$25.7 million for the quarter, a result which included the recovery of the amended assessed property tax of S$4.1 million at 27 Penjuru Lane.

Excluding this one off property tax recovery, gross revenue for the quarter would have been S$21.6 million, a result in line with the previous quarter and 1.7 percent higher than the previous corresponding period.

This result was driven by positive rental reversions and recoveries at 8 & 10 Pandan Crescent, 1 Bukit Batok St 22 and 29 Woodlands Industrial Park E1, which offset the loss of rental income from the sale of 31 Admiralty Road.

Net property income of S$14.7 million for the quarter was in line with the previous quarter but down 3 percent compared to the previous corresponding period. This slight fall year on year was due largely to the loss of net rental income following the divestment of 31 Admiralty Road.