SINGAPORE (Oct 25): The manager of AIMS AMP Capital Industrial REIT (AAREIT) has reported a DPU of 2.50 cents for 2Q19, 2% lower than the 2.55 cents in 2Q18.

However, distributions to unitholders increased by 5% to $17.1 million from $16.3 million a year ago.

DPU was lower despite higher distributions due to higher number of units in issue for the period. In 2Q19, AAREIT had issued about 686.52 million units, while 2Q18 only had 640.63 million units issued.

For 1H19, DPU came in at 5 cents, 1.0% lower than 5.05 cents in 1H18.

Gross revenue for the quarter was a slight 0.3% lower $29.4 million from $29.5 million last year, mainly due to first full quarter rental contribution from the REIT’s recently completed property at 51 Marsiling Road, which became income producing from Apr 27 and the increase in revenue contribution from 27 Penjuru Lane arising from higher occupancy rate.  

Property operating expenses remained flat at $10.1 million, bringing net property income for 2Q19 to $19.3 million, 0.5% lower than $19.4 million last year.

During the quarter the REIT saw a $1.81 million profit from net change in fair value of investment properties, compared to a loss of $14.8 million in 2Q18.

Cash and cash equivalents as at Sept 30 stood at $14.0 million.

Koh Wee Lih, CEO of the manager, says, “We continue to focus on asset and lease management. Through active evaluation of our assets, we are constantly considering redevelopment opportunities to strengthen the quality of our portfolio and to ensure AA REIT remains competitive in the current operating environment.”

On the outlook, AAREIT says it will continue to focus on active asset and lease management and to optimise its portfolio through sector and tenant diversification across its portfolio of 26 properties, supported by a prudent capital management approach.

Units in AAREIT last traded at $1.34 on Wednesday.