3Q18 gross revenue fell 2.2% to $28.9 million mainly due to lower rental and recoveries from 3 Tuas Avenue 2 as the master lease expired in FY2018. Net property income fell 0.8% to $19.2 million which was in line with the drop in gross revenue. Distributions to unitholders came in 4.6% higher at $17.1 million mainly due to the advanced distribution which was declared in connection with the 2017 placement.
During the quarter, manager AIMS AMP Capital Industrial REIT Management successfully executed 29 new and renewal leases, representing 10.9% of total net lettable area. Portfolio occupancy is at 88.4 per cent as at 31 December 2017.
AA REIT’s redevelopment at 8 Tuas Avenue 20 which achieved its Temporary Occupation Permit (TOP) on Aug 29 2017 is now 83.7% occupied. Meanwhile, rental income will commence in the first quarter of FY19 for AA REIT’s completed greenfield build-to-suit development at 51 Marsiling Road.
In line with AA REIT’s capital recycling strategy, the manager recently announced the divestment of its smallest property at 10 Soon Lee Road for $8.17 million, at an approximate 28% premium over the property’s latest valuation of $6.4 million.
During the quarter, AA REIT successfully raised gross proceeds of $55 million through a private placement.
As at Dec 31 2017, AA REIT’s weighted average debt maturity is at 2.1 years with no debt due for refinancing until November 2018.
Units in AA REIT closed at $1.37 on Wednesday.
