AIMS APAC REIT (SGX:O5RU
) (AA REIT) has reported a distribution per unit (DPU) of 9.85 cents for FY2026 ended March 31, 2.6% higher y-o-y.
Gross revenue increased 2.2% y-o-y to $190.7 million while net property income rose 5.7% y-o-y to $141.3 million. The higher figures were mainly attributable to positive rental reversions across the portfolio and lower property expenses arising from lower electricity expenses and cost efficiencies.
As a result, distributable income was up by 3.1% y-o-y to $80.6 million.
On the portfolio front, AA REIT secured 33 new leases and renew 65 leases, across more than 2.3 million sq ft, which translates to 27.4% of its portfolio net lettable area (NLA).
Portfolio occupancy remained stable at 93.6% or 96.8% on a committed lease basis with weighted average lease expiry of 4.0 years. Portfolio rental reversions stood at 7.7%.
As at March 31, AA REIT’s portfolio valuation stood at $2.25 billion, which is an increase of 5.9% from a year ago due to appreciation of the Australian dollar and the acquisition of 2 Aljunied Avenue 1. Net asset value per unit rose to $1.28 in the same period, against $1.23 a year ago.
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On the capital management front, excluding perpetual securities, AA REIT's aggregate leverage stood at 26.8% as at March 31.
Undrawn committed facilities and bank balances stood at approximately $263.4 million. Weighted average debt maturity was 2.2 years with an interest coverage ratio of 2.7 times.
Blended debt funding cost declined to 4.1% as at March 31, compared to 4.3% a year ago.
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80% of the REIT’s borrowing are hedged on fixed rate and 69% of its expected Australian dollar distributable income is hedged into Singapore dollars on a rolling four-quarter basis.
According to the manager, the two business park assets at Macquarie Park and Bella Vista were among the 15 projects endorsed by the NSW Government Investment Delivery Authority (IDA) for data centre development in April, having been selected from A$92.6 billion in proposals reviewed, of which A$51.9 billion were endorsed including Microsoft, NEXTDC, Goodman and Stockland owned sites.
AA REIT believes that as demand for cloud computing, AI infrastructure and digital connectivity continues to accelerate, it is well positioned to capture the long-term value creation potential within its Australian portfolio.
“We are pleased to share a significant announcement made by the NSW Government endorsing our two Australian assets in Macquarie Park and Bella Vista among 15 projects as new data centre sites. This milestone underscores the strategic value of our Australian portfolio and provides a credible pathway to capture opportunities within the data centre segment,” says George Wang, Chairman of the manager.
“Looking ahead, we remain focused on delivering stable income growth, progressing on our development pipeline and pursuing acquisitions selectively,” says Russell Ng, CEO of the manager.
Units of AA REIT closed flat at $1.52 on May 6.
