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Weakening global economy. It affects all reits
chengwh1 ( Date: 12-Feb-2025 10:44) Posted:
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Why is this REIT retreating ?
A possible good news below if the RBA does cut,...
https://www.abc.net.au/news/2025-02-05/reserve-bank-interest-rate-home-loan-explained/104894318?utm_source=abc_news_app& utm_medium=content_shared& utm_campaign=abc_news_app& utm_content=other
A possible good news below if the RBA does cut,...
https://www.abc.net.au/news/2025-02-05/reserve-bank-interest-rate-home-loan-explained/104894318?utm_source=abc_news_app& utm_medium=content_shared& utm_campaign=abc_news_app& utm_content=other
Aims Apac Reit to divest warehouse in Singapore for S$24.4 million
The sale price is a 32.5% premium to the property&rsquo s valuation as at Mar 31, 2024
AIMS Apac Real Estate Investment Trust : O5RU +0.8% (AA Reit) is divesting a warehouse at 3 Toh Tuck Link in Singapore for S$24.4 million.
The sale price represents a 32.5 per cent premium to the property&rsquo s valuation of S$18.4 million as at Mar 31, 2024, the Reit manager said in a bourse filing on Tuesday (Dec 10) evening.
The buyer is Hong Kong-headquartered multinational logistics company Crown Worldwide. Subject to JTC Corporation&rsquo s approval, the divestment is set to complete by the first half of next year.
Net proceeds from the divestment may be re-invested to support AA Reit&rsquo s various growth initiatives, including potential new acquisitions, asset enhancement initiatives or future redevelopment projects, said Russell Ng, chief executive officer of the manager.
&ldquo This aligns with our proactive asset management strategy and our continuous effort towards portfolio rejuvenation, ultimately strengthening AA Reit&rsquo s resiliency as well as delivering long-term sustainable returns for our unitholders,&rdquo he added.
The warehouse located in the Toh Tuck Industrial Estate is in part a three-storey factory and a five-storey ancillary office building with a total gross floor area of 12,492.4 square metres.
Following the divestment, AA Reit&rsquo s portfolio will comprise 27 properties across Singapore and Australia.
AIMS Apac Real Estate Investment Trust : O5RU +0.8% (AA Reit) is divesting a warehouse at 3 Toh Tuck Link in Singapore for S$24.4 million.
The sale price represents a 32.5 per cent premium to the property&rsquo s valuation of S$18.4 million as at Mar 31, 2024, the Reit manager said in a bourse filing on Tuesday (Dec 10) evening.
Aims Apac Reit&rsquo s H1 DPU rises 0.4% to S$0.0467 on rental growth
This is despite an enlarged unit base following an equity fundraising exercise completed in H1 FY2024
AIMS Apac Reit : O5RU +0.79%&rsquo s (AA Reit) distribution per unit (DPU) for the first half ended September rose 0.4 per cent to S$0.0467, from its H1 FY2024 DPU of S$0.0465.
The overall improvement in DPU comes despite an enlarged unit base following an equity fundraising exercise completed in H1 FY2024, said its manager on Tuesday (Nov 5).
Revenue for H1 FY2025 grew 7.7 per cent to S$93.5 million from S$86.8 million a year prior. Net property income (NPI) rose 5.1 per cent on the year to S$67.6 million.
Distributions to unitholders were up 5 per cent at S$38 million across 813.6 million units, against distributions of S$36.1 million across 810.1 million units for H1 FY2024.
The increase in revenue, NPI and distributions were attributed to rental growth across AA Reit&rsquo s logistics and warehouse, and industrial segments, as well as strong rental reversions.
Over H1 FY2025, the real estate investment trust (Reit) achieved a portfolio rental reversion rate of 16.9 per cent. Its occupancy stood at 95 per cent as at end-September 2024, compared with 98.1 per cent in the same period last year.
Excluding the impact of asset enhancement initiatives (AEIs) and transitory movement by tenants, portfolio occupancy rate would have been 96.7 per cent.
Currently, AEIs are being undertaken at two of the Reit&rsquo s industrial assets &ndash 7 Clementi Loop and 15 Tai Seng Drive. The initiatives include roofing works, structural and external facade works, as well as upgrading of internal common areas and amenities.
Both AEIs are expected to be completed in the first quarter of FY2026. They are projected to yield more than 7 per cent in NPI.
Russell Ng, chief executive of AA Reit&rsquo s manager, said the initiatives help the Reit develop a &ldquo high-quality portfolio that drives consistent DPU growth and overall distributions to unitholders&rdquo .
George Wang, chairman of AA Reit&rsquo s manager, said: &ldquo Backed by our robust balance sheet, we are well-positioned to grow unitholders&rsquo value through strategic investments that deliver risk-adjusted returns and sustainable long-term income.&rdquo
He is also confident that the Reit will continue to grow amid an improving macroeconomic environment.
As at Sep 30, 2024, the Reit&rsquo s aggregate leverage stood at 33.4 per cent with no refinancing risk for the next 12 months, and it has undrawn committed facilities and cash and bank balances of about S$305.9 million.
Looking ahead, the manager believes that demand for industrial space in Singapore will continue to rise as international firms expand into the Republic.
&ldquo Transaction volume of multiple-user factory spaces and warehouses looks to gain momentum,&rdquo it said.
For its assets in Australia, the manager believes growth will be underpinned by strong tenant covenants on long lease terms, and built-in rental escalations from long-term government infrastructure investments.
It has fluctuated +/- 20% of its current price between 2020 and now.
Suitable for those who can stomach a 20% loss.
Suitable for those who can stomach a 20% loss.
asianguy ( Date: 05-Nov-2024 20:16) Posted:
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Just in time for Christmas. 7.5% dividend rate at current price.
Much better than T-bill or SSB for long term shareholder. Toast to those who invested !
Much better than T-bill or SSB for long term shareholder. Toast to those who invested !
Ex Date: 13/11/2024
Pay Date: 24/12/2024
Ok found it.
Distribution of 2.400 Singapore cents per unit for the period from 1 July 2024 to 30 September 2024, comprises (i) a taxable income of 1.910 Singapore cents per unit and (ii) a capital distribution of 0.490 Singapore cents per unit.
Distribution of 2.400 Singapore cents per unit for the period from 1 July 2024 to 30 September 2024, comprises (i) a taxable income of 1.910 Singapore cents per unit and (ii) a capital distribution of 0.490 Singapore cents per unit.
Delvyss ( Date: 05-Nov-2024 11:41) Posted:
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May I ask what' s the actual dividend declared?
When Australia starts cutting rates, the dpu stands a chance to be even more !
Come let's buy up the quarterly dividend payout shares.
That' s right. But not forgetting too,... the 3 Mapletree REITs, they continue to provide us quarterly dividends. Receiving quarterly dividends is important for income investors... hence, DBS knowing this too but ' not' OCBC & UOB. The share price tends to ' take this into consideration too' if there is quarterly dividends payout.
pkli899 ( Date: 17-Oct-2024 15:17) Posted:
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Reason is simply, they kept a relatively low gearing below 34%.
Once this approaches 40%, the returns start to fall dramatically.
Also, this company has been developing its assets, modernising them and raising their rents. NPI increasing significantly, so distributable income increased a little.
Once this approaches 40%, the returns start to fall dramatically.
Also, this company has been developing its assets, modernising them and raising their rents. NPI increasing significantly, so distributable income increased a little.
pkli899 ( Date: 05-Nov-2024 09:52) Posted:
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Good results indeed.
One of the rare few.
One of the rare few.
Agree! Has delivered 200 percent returns since 2010
Good set of result and dividends !
AIMS APAC REIT achieves 5.0% YoY rise in Distributions to Unitholders to S$38.0 million for 1H FY2025
&bull DPU increased by 0.4% YoY to 4.670 Singapore cents for 1H FY2025, despite larger Unitholders base following the completion of the S$100 million Equity Fund Raising in 1H FY2024
&bull Gross Revenue and Net Property Income rose by 7.7% and 5.1% YoY to S$93.5 million and S$67.6 million for 1H FY2025 respectively
&bull Continued strong rental reversions of 16.9% for 1H FY2025 and long portfolio WALE of 5.0 years
&bull Stable portfolio occupancy at 95.0%. Excluding the impact of Asset Enhancement Initiatives (&ldquo AEIs&rdquo ) and transitory movement of tenants1 , portfolio occupancy based on committed leases would be 96.7%
&bull New unsecured Sustainability Linked Loan (&ldquo SLL&rdquo ) of up to S$400 million and A$150 million advances AA REIT&rsquo s sustainability commitments and provides headroom for AEIs and potential growth opportunities
&bull Portfolio rejuvenation and growth strategies progressing well, supporting continued enhancement of long-term value for Unitholders
AIMS APAC REIT achieves 5.0% YoY rise in Distributions to Unitholders to S$38.0 million for 1H FY2025
&bull DPU increased by 0.4% YoY to 4.670 Singapore cents for 1H FY2025, despite larger Unitholders base following the completion of the S$100 million Equity Fund Raising in 1H FY2024
&bull Gross Revenue and Net Property Income rose by 7.7% and 5.1% YoY to S$93.5 million and S$67.6 million for 1H FY2025 respectively
&bull Continued strong rental reversions of 16.9% for 1H FY2025 and long portfolio WALE of 5.0 years
&bull Stable portfolio occupancy at 95.0%. Excluding the impact of Asset Enhancement Initiatives (&ldquo AEIs&rdquo ) and transitory movement of tenants1 , portfolio occupancy based on committed leases would be 96.7%
&bull New unsecured Sustainability Linked Loan (&ldquo SLL&rdquo ) of up to S$400 million and A$150 million advances AA REIT&rsquo s sustainability commitments and provides headroom for AEIs and potential growth opportunities
&bull Portfolio rejuvenation and growth strategies progressing well, supporting continued enhancement of long-term value for Unitholders
Yes, one of the last few not converted to half yearly payout.
Look forward to the Q3 dividend, one of the few that still gives out quarterly dividends.
Aims Apac Reit bets on asset rejuvenation strategy to drive long-term value
The manager expects its two current asset enhancement projects to boost net property income by more than 7 per cent
AIMS Apac Reit (AA Reit) will focus on rejuvenating and enhancing assets within its portfolio which have &ldquo potential for enhancement&rdquo to drive long-term value for its stakeholders.
These could be properties where increasing the floor area, or improving the building specifications, can help to attract and retain higher quality corporate tenants, said Russell Ng, chief executive officer of the real estate investment trust&rsquo s (Reit) manager.
For instance, in 2019, the Reit upgraded the general amenities for Optus Centre, its industrial asset in Australia. This resulted in it securing a 12-year master lease extension with its largest tenant.
AA Reit&rsquo s asset enhancement initiatives thus create value in two ways, said Ng. By improving the building specifications, outlook and presentation, the Reit can then attract and secure high quality tenants.
&ldquo (This) then really underpins the duration of the cash flow and the quality of the cash flow,&rdquo he said.
Yet, the Reit does not embark on such projects indiscriminately, said Ng. &ldquo We&rsquo re looking for reversion growth potential&hellip There needs to be a clear pathway to value creation before we start any work.&rdquo
New lease of life
This is the case for AA Reit&rsquo s two ongoing rejuvenation projects in Singapore.
One is a two-storey warehouse at 7 Clementi Loop. Works are underway to upgrade the building&rsquo s specifications to meet the long-term requirements of the master tenant, a global storage information provider.
This includes upgrading it into a Green Mark Gold certified building, and fitting the property with new technology. The master tenant has signed a new 15-year lease.
This property was chosen as it was an older industrial building with low yields, said Ng &ndash its passing rents were 30 per cent lower than market rental rates.
The second property, an industrial building at 15 Tai Seng Drive, was also picked because it had low passing rental rates.
Here, the plan was to reposition the property to capture better rental reversions, said Ng. &ldquo So we had a strategy to, again, improve the overall look and feel. We wanted to attract high-tech and high-value-added users&hellip companies in electronics and advanced manufacturing.&rdquo
This project enabled AA Reit to secure an anchor tenant &ndash global advanced manufacturing and technology group Accuron Technologies &ndash ahead of commencing the works. Accuron will occupy a third of the new building for a lease of 10 years.
&ldquo This really underpins our strategy, because (Accuron) is really looking to come in and is also in a position to pay higher rents.&rdquo
The two asset enhancement projects are set to complete during the next financial year and are expected to boost net property income (NPI) by more than 7 per cent once completed.
Extracting greater value
This asset rejuvenation strategy, which it first embarked on in 2011, is what has differentiated AA Reit from other industrial Reits, said Ng.
This has enabled the Reit to achieve high rental reversions. It reported rental reversion of 24.3 per cent in FY2024, up from 18.5 per cent a year ago.
Despite a high portfolio churn rate of around 20 per cent, the Reit has maintained high occupancy levels, said Ng. In FY2024, its portfolio occupancy was 97.8 per cent, compared to the peer average of 93.8 per cent.
This is aided by a &ldquo very proactive tenancy engagement strategy&rdquo , said Ng. AA Reit works with its tenants to understand their requirements and tailors its asset enhancement projects to fit their needs.
The Reit has also seen strong NPI growth as a result. For the first quarter ended Jun 30, NPI was up 6.6 per cent year on year to S$34.4 million, driven by sustained rental reversions of 12.8 per cent for the quarter.
Revenue for the period grew 9.7 per cent to S$47.3 million, from S$43.2 million a year ago.
Distributions to unitholders increased 7.3 per cent to S$18.4 million, from S$17.2 million, though distribution per unit fell 1.7 per cent to S$0.0226 due to an enlarged units base following equity fundraising.
For now, the Reit has one other potential enhancement project in the pipeline, said Ng. It is considering redeveloping an industrial asset in the JTC Food Zone.
&ldquo If we were to pursue it, we would probably do so in the next two financial years,&rdquo he added.
Selective acquisitions
While the Reit manager is &ldquo continuously assessing acquisitions all the time&rdquo , its main focus will still be its core markets where it has the expertise, track record and &ldquo boots on the ground&rdquo , said Ng.
&ldquo If you look at our acquisition track record, we&rsquo ve been very selective. We&rsquo re not a serial acquirer,&rdquo he said. &ldquo We&rsquo re very careful about selecting the right assets because every asset acts as a foundational asset within the broader portfolio, and that gives it that resilience and growth stability.&rdquo
In the recent high interest rate environment, it also &ldquo makes more sense&rdquo for the Reit to focus on organic growth by looking at what is within the portfolio.
That said, with rate cuts on the horizon, &ldquo the outlook for acquisitions is looking much more positive than the last couple (of) years&rdquo , said Ng.
Though there are no immediate deals on the horizon, he added: &ldquo I think acquisitions could be much more interesting for us.&rdquo
Any future moves &ndash whether asset rejuvenation or acquisitions &ndash will still be done in AA Reit&rsquo s two current markets of Singapore and Australia, said Ng.
The manager still sees opportunities in these two areas and prefers to stick to places where it has experience and expertise.
For Singapore, there is &ldquo still a lot of room&rdquo for growth given the continued investments by global multinationals across various sectors, he said.
As for Australia, the manager views it positively as there is still population growth, potential for greater e-commerce penetration, and more importantly, infrastructure growth which will boost industrial activity.
It is thus &ldquo not a priority at the moment&rdquo for AA Reit to explore opportunities in other markets such as South-east Asia.
Singapore and Australia still see enough deal flows, and are both transparent markets with &ldquo fairly healthy&rdquo risk-return metrics, noted Ng. Comparatively, emerging markets may have growth potential, but there is higher risk.
The 1Q YoY DPU decline is just a timing issue regarding the share issue increase. DPU will jump significantly in 2Q.