AIMS APAC REIT (AA REIT) reported a 1.6% y-o-y rise in distributions to unitholders to $38.6 million and 1.1% rise in distribution per unit (DPU) to 4.720 Singapore cents for 1HFY2026, for the six months to end-Sept.
Gross revenue in 1HFY2026 rose by 0.2% y-o-y to $93.7 million and Net Property Income (NPI) increased by 1.1% y-o-y to $68.4 million, underpinned by good operational performance and portfolio rental growth.
In 1HFY2026, 11 new and 36 renewal leases were announced, totaling 97,175 sq m, which represented 12.6% of the portfolio’s net lettable area (NLA), with a positive rental reversion of 7.7% achieved.
As at end-Sept the portfolio occupancy was 93.3%. Weighted average lease expiry stood at 4.2 years. 82.5% of gross rental income (GRI) is from tenants in essential and defensive industries. Geographically, 76.3% of GRI is from Singapore with the remaining Australian income anchored by high-quality, long-term leases.
In 1HFY2026, the AEI at 7 Clementi Loop was completed and the manager has secured a 15-year master lease with a global storage and information management firm.
On Aug 29, the manager announced the proposed acquisition of a Singapore industrial property in a strategic city-fringe location for $56.65 million. The proposed acquisition of the asset at 2 Aljunied Avenue 1 will deliver an attractive NPI yield of 8.1% and DPU accretion of 2.5%.
See also: Yongmao Holdings guides for net loss for 1HFY2026
As at Sept 30, AA REIT’s aggregate leverage stood at 35% with no debt refinancing until FY2027. Weighted average debt maturity stood at 2.5 years with an interest coverage ratio of 2.5 times. Blended debt funding cost lowered to 4.2% as at Sept 30 from 4.4% a year ago. 70% of debt is on fixed rates, with remaining fixed debt maturity of less than 1 year allowing it to capture positive impact from any reduction from floating interest rates. The manager also hedges 75% of its expected Australian dollar distributable income into Singapore dollars on a rolling four-quarter basis, minimising the impact of any foreign exchange rate volatilities.
The annualised DPU yield is 6.84% based on the closing price on Nov 4.
