25 Must-See Numbers to Understand About AIMS AMP Capital Industrial REIT
AIMS AMP Capital Industrial REIT (SGX: O5RU), or AA REIT, is an industrial real estate investment trust (REIT) that has a presence in Singapore and Australia currently.
The REIT released its annual report for the 12 months ended 31 March 2017 (FY2017) earlier in the year. Here are some statistics that investors might want to know about from the report.
Where does the REIT make money from?
With a net lettable area of approximately 627,155 square metres, AA REIT’s portfolio, as at 31 March 2017, comprised of 27 industrial properties valued at around S$1.45 billion. Out of the 27 assets, 26 are in Singapore while one is located in Sydney, Australia.
As at 31 March 2017, the occupancy rate for the portfolio came in at 94.6%, higher than the industrial average of 89.4%. The weighted average lease expiry (WALE) was 2.4 years.
A total of 148 tenants occupy the 27 properties. 49.4% of the tenants are under master leases while the rest are under multi-tenancy leases. Master leases provide stability of income growth due to locked-in longer lease duration and built-in rent escalations.
How much money did the REIT make?
Gross revenue for FY2017 came in at S$120.1 million, slipping 3.4% as compared to a year ago. Net property income fell 3.5% to S$79.4 million.
Distributions to unitholders declined 2.2% year-on-year to S$70.5 million.
The lower distributable income for the year was partly due to a temporary loss of revenue from the redevelopment of its property at 8 & 10 Tuas Avenue 20 and lower income contribution from some of its multi-tenanted properties.
As at 31 March 2017, the aggregate leverage was 36.1%, rising from 32.4% exactly a year ago. However, the all-in-cost of financing declined from 4.2% to 3.7%.
How much did unitholders get?
Unitholders received a distribution per unit (DPU) of 11.05 cents for FY2017, a fall of 2.6% as compared to FY2016.
What does the future hold?
The redevelopment at 8 & 10 Tuas Avenue 20 is targeted to be completed by the second half of 2017. Upon completion, the redevelopment will maximise the plot ratio and increase the gross floor area to 158,853 square feet.
Its first third-party greenfield build-to-suit development at 51 Marsiling Road is also expected to be completed by the second half of this year. The S$39.4 million five-storey industrial facility is pre-committed to Beyonics International Pte Ltd with a ten-year master lease, inclusive of rent escalations. The property is projected to provide a rental income of S$3.5 million in the first year.