SINGAPORE (Feb 9): The manager of AIMS AMP Capital Industrial REIT (AA REIT) on Thursday announced distribution per unit (DPU) of 2.77 cents in 3Q17, down 2.8% from DPU of 2.85 cents a year ago.

Distributable income fell 2.3% to $17.7 million in 3Q, from $18.1 million a year ago.

Revenue in the quarter ended Dec 31, 2016 fell 6.7% to $30.4 million, from $32.5 million a year ago.

This was mainly due to lower rental contributions for the properties at 27 Penjuru Lane, 8 & 10 Pandan Crescent as well as the loss in revenue due to the redevelopment of 8 & 10 Tuas Avenue 20.

Net property income fell 6.0% to $19.8 million in 3Q, compared to $21.1 million a year ago, due to lower gross revenue and higher property expenses.

Cash and cash equivalents stood at $8.9 million as at Dec 31, 2016.

In a filing to SGX, the manager of AA REIT says it executed 19 new and renewal leases during the period, representing 82,149.3 sqm or 13.1% of net lettable area.

Moving forward, AA REIT’s manager says it is proactively managing its lease expiries with tenant retention as the top priority as rentals continue to be under pressure amid global economic uncertainty and an industrial oversupply in Singapore.

Koh Wee Lih, CEO of the manager of the REIT, says the company remains focused on delivering more value for its unitholders, either from unlocking organic value within the portfolio or real estate opportunities in the market.

Koh notes that AA REIT currently has approximately 760,000 sq ft of under-utilised gross floor area in the portfolio.

Units of AIMS AMP Capital Industrial REIT closed 1 cent higher at $1.37 on Wednesday.