AIMS APAC Reit    Last:1.56    -0.01

AIMSAMPI Reit

Great! Didn't notice it went below 1 last year! Hang tight!

kwwongm      ( Date: 06-May-2021 08:06) Posted: I bought last year when it dip below sgd 1.....now sitting @ capital gain 40% and more than 10% yield... 001Zogel      ( Date: 06-May-2021 06:34) Posted: $1 per share? That's like a decade ago rite?

 

Brokers' take: Analysts raise AA Reit target price conversion of assets to data centres a positive surprise

IN the case where  AIMS APAC Reit: O5RU 0%  (AA Reit) converts several assets into data centres once the moratorium is lifted, the real estate investment trust' s value will be enhanced and well supported by unitholders, DBS Group Research said in a Thursday report.

With more than 500,000 square feet of untapped gross floor area, DBS sees AA Reit as a " goldmine" of valuable land bank to extract value, and remains excited that the manager is constantly reviewing options to best utilise assets.

Both RHB and DBS maintained their " buy" calls on AA Reit, with DBS raising its target price to S$1.60, while RHB raised its target price to S$1.58 from S$1.55 previously, according to Thursday reports.

This comes after AA Reit posted a robust set of results for Q4 FY21 ended March this year.
The strong results were due to recent acquisitions, better than expected rental performance and lower rental reliefs, said DBS.
 

DBS and RHB also noted that there was room for rental growth with a rebound in portfolio occupancy, and positive rental reversions driven by logistics leases. The two brokers expect robust growth, given that about 14 per cent of the 24 per cent of leases expiring in FY2022 will come from logistics or warehouse properties.

The remaining 6 per cent are from high-tech industrial properties and 4 per cent from light or general industrial where reversionary trends are expected to remain largely positive, with high tenant retention, DBS added.

Although there was a slight dip in portfolio valuations amid the pandemic, DBS highlights that the impact on net asset value remains marginal. The research house also notes that leverage is within optimal range post-acquisition, and that there would be fundraising possibilities if acquisition momentum picks up.

DBS expects strong earnings momentum in FY2022, and raises estimates by 4-6 per cent on the back of recovery in earnings and contribution from recent acquisitions, accounting for " better-than-expected rental growth and occupancies" and " lower-than-projected interest costs" .

" We remain optimistic that AA Reit can deliver close to pre-pandemic earnings and project a strong 11 per cent rebound in distribution per unit (DPU) in FY2022," DBS added.

Further, the research house said that AA Reit' s yield had the potential to compress by a further 80 basis points as it is currently trading at a higher forward yield of 7.2 per cent which is significantly higher than Singapore-listed industrial Reits' average of 4.9 per cent.

Meanwhile, RHB noted that valuations of AA Reit are attractive with the Reit trading at one time its price-to-book value as compared to industrial Reits' average of 1.5 times their price-to-book value, and slightly below its five-year mean.

With higher portfolio occupancy, earnings accretion from acquisitions, absence of rental rebates and lower interest expense, RHB analyst Vijay Natarajan estimates the DPU for FY2022 to grow by 10 per cent.

Mr Natarajan also expects the Reit to continue its acquisition trajectory, with potential acquisitions of S$100-200 million in assets per annum. In addition, AA Reit' s modest gearing presents headroom for asset enhancement initiatives and acquisition, he said.

RHB has tweaked up its FY22-23 DPU by 1-2 per cent factoring in slightly better rental growth.

AA Reit&rsquo s units closed at S$1.41 on Thursday, up by S$0.02 or 1.44 per cent.

 

 

 

I bought last year when it dip below sgd 1.....now sitting @ capital gain 40% and more than 10% yield...

001Zogel      ( Date: 06-May-2021 06:34) Posted: $1 per share? That's like a decade ago rite? kwwongm      ( Date: 05-May-2021 17:50) Posted: Good reit....vested at recent low @ 1 per share......

 

$1 per share? That's like a decade ago rite?

kwwongm      ( Date: 05-May-2021 17:50) Posted: Good reit....vested at recent low @ 1 per share...... paul1688      ( Date: 05-May-2021 16:20) Posted: Nice! At 2.9 cents this is the highest quarterly dividend even from 2016 to 2019 (pre C-19). If sustainable, this translates to a yield of 8.3% at current price. Pleased with the AIMS management team since they took over.  Remarks : Vested. Not enticement to buy. Pls DYODD.

 

Good point. In the 2 years before C-19 the DPU ranges from 2.5 to 2.75 cents. I am ok with a sustainable 2.5 cents, anything above to 2.75 will be sweet and if it gets above 2.75 then it is really nice. Will have to review the quarterly report card. All the best to holders. 

Rokawa      ( Date: 05-May-2021 23:35) Posted: 2.9 cents include remaining 1.1m or 1.8m i cant remember of retained distribution. i think sustainable is hopefully around 2.7 cents? hopefully

 

2.9 cents include remaining 1.1m or 1.8m i cant remember of retained distribution.
i think sustainable is hopefully around 2.7 cents? hopefully

 

Good reit....vested at recent low @ 1 per share......

paul1688      ( Date: 05-May-2021 16:20) Posted: Nice! At 2.9 cents this is the highest quarterly dividend even from 2016 to 2019 (pre C-19). If sustainable, this translates to a yield of 8.3% at current price. Pleased with the AIMS management team since they took over.  Remarks : Vested. Not enticement to buy. Pls DYODD.

 

Nice! At 2.9 cents this is the highest quarterly dividend even from 2016 to 2019 (pre C-19). If sustainable, this translates to a yield of 8.3% at current price. Pleased with the AIMS management team since they took over. 

Remarks : Vested. Not enticement to buy. Pls DYODD. 

 

Haha, where is the decimal point?
2.9 cents la......not 29 cents.

kwwongm      ( Date: 05-May-2021 13:50) Posted: https://www.businesstimes.com.sg/companies-markets/aims-apac-reit-posts-45-rise-in-q4-dpu-to-29-s-cents Wow 29 cents dividend....on the way to sgd 1.5...

 

https://www.businesstimes.com.sg/companies-markets/aims-apac-reit-posts-45-rise-in-q4-dpu-to-29-s-cents

Wow 29 cents dividend....on the way to sgd 1.5...

 

1.5....!

antifragile      ( Date: 06-Apr-2021 13:27) Posted: Catching up with Sabana...! $1b market cap...!

 

RHB has initiated " buy" on AIMS APAC Reit (AAReit), citing it as an overlooked and undervalued industrial real estate investment trust (Reit) with high-quality industrial assets in Singapore and Australia.

It has a target price of S$1.55 for AAReit.

In a report on Thursday, RHB said AAReit has a high-quality logistics-focused industrial portfolio that sees the Reit deriving half of its income from logistics assets. Logistics assets emerged as key beneficiaries of the Covid-19 pandemic, boosting the Reit' s portfolio occupancy by 6.3 percentage points to 95.7 per cent to date as at the third quarter of FY2021. The research team foresees this high level of occupancy to continue as demand for logistics assets remains strong due to shifts in supply chains and e-commerce trends.

Analyst Vijay Natarajan also expects the Reit' s distribution per unit (DPU) turnaround at the end of FY2022 to increase by 9 per cent, supported by two recent accretive acquisitions in Singapore, including the acquisition of a ramp-up logistics warehouse at 7 Bulim Street, as well as occupancy improvements and the absence of one-off rent rebates. He believes that AAReit has room for acquisition-led growth and is a potential merger and acquisition candidate in the medium term. 

 

Catching up with Sabana...!

$1b market cap...!

 

Speculation.

 

Be aware the infamous " It's not an asset sale" rationale👇

https://www.google.com/amp/s/www.businesstimes.com.sg/companies-markets/sabana-reit-clarifies-proposed-merger-with-esr-reit-not-an-asset-sale%3famp

 

Must watch out for two things
1) Will ESR buy out the mgr
2) Will the excuse .... it's not a sale of asset but merger of asset, to make a low ball offer

kwwongm      ( Date: 08-Feb-2021 11:27) Posted: 1.8 times of NAV laksaman57      ( Date: 08-Feb-2021 11:09) Posted: What'll be ESR reit offer price that AIMS APAC reit unitholders will find acceptabl

 

1.8 times of NAV

laksaman57      ( Date: 08-Feb-2021 11:09) Posted: What'll be ESR reit offer price that AIMS APAC reit unitholders will find acceptable Starship      ( Date: 05-Feb-2021 18:54) Posted: Broker' s take: DBS raises AIMS Apac Reit TP to S$1.50, sees strong earnings rebound FRI, FEB 05, 2021 - 2:00 PM DBS Group Research has raised its target price for AIMS Apac Reit (AA Reit) to S$1.50 from S$1.40 with an unchanged " buy" recommendation, as it projects a strong rebound for the Reit' s earnings in FY2022. In a report on Friday, the research house opined that the market has largely ignored AA Reit' s " attractive valuations on all fronts" when compared to its five-year historical average. At the Reit' s unit price of S$1.28, the counter is estimated to trade at a forward yield of 7.5 per cent and price to net asset value ratio (P/NAV) of 0.96 times. Both are close to -1 standard deviation of their historical mean, said DBS, which deems the risk-reward ratio for AA Reit as attractive at this level. " Based on valuation metrics such as dividend yield and P/NAV multiple, AA Reit is currently trading at spreads that are wider than its historical five-year average. Its average historical spread of 0.32 times implies that AA Reit can potentially trade at P/NAV of 1.22 times and dividend yield could compress by up to 1 per cent," it noted. The research house projects AA Reit' s full-year distribution per unit (DPU) to grow by 9 per cent in FY2022, driven by organic growth in its portfolio as well as the recent acquisitions of Sime Darby Business Centre and 7 Bulim Street. " Supported by a longer-than-average weighted average lease expiry of 3.9 years and potential redevelopment upside on selected properties, the outlook for the Reit remains bright," it added of the acquisitions. DBS further estimates that AA Reit is trading at an implied capitalisation rate of about 6 per cent, which it says makes it an attractive candidate for a merger and acquisition deal. " With complementary assets, AA Reit' s portfolio of quality assets in Singapore and Australia, coupled with its untapped GFA, offers potential suitors a stable income stream and an avenue for organic growth," it said. A likely suitor is the Reit' s largest shareholder ESR Cayman, which DBS believes may consider merging the Reit with its other listed vehicle ESR Reit following its failed merger bid with Sabana Reit. " Compared to Sabana Reit, AA Reit has a larger portfolio of industrial and logistics properties that is currently valued at S$1.7 billion. Two of AA Reit' s assets are freehold properties in Australia, and this will complement ESR Reit' s ongoing plans to invest in freehold properties overseas to address the issue of the shorter land tenure of its Singapore portfolio," said DBS. https://www.businesstimes.com.sg/companies-markets/brokers-take-dbs-raises-aims-apac-reit-tp-to-s150-sees-strong-earnings-rebound

 

What'll be ESR reit offer price that AIMS APAC reit unitholders will find acceptable

Starship      ( Date: 05-Feb-2021 18:54) Posted: Broker' s take: DBS raises AIMS Apac Reit TP to S$1.50, sees strong earnings rebound FRI, FEB 05, 2021 - 2:00 PM DBS Group Research has raised its target price for AIMS Apac Reit (AA Reit) to S$1.50 from S$1.40 with an unchanged " buy" recommendation, as it projects a strong rebound for the Reit' s earnings in FY2022. In a report on Friday, the research house opined that the market has largely ignored AA Reit' s " attractive valuations on all fronts" when compared to its five-year historical average. At the Reit' s unit price of S$1.28, the counter is estimated to trade at a forward yield of 7.5 per cent and price to net asset value ratio (P/NAV) of 0.96 times. Both are close to -1 standard deviation of their historical mean, said DBS, which deems the risk-reward ratio for AA Reit as attractive at this level. " Based on valuation metrics such as dividend yield and P/NAV multiple, AA Reit is currently trading at spreads that are wider than its historical five-year average. Its average historical spread of 0.32 times implies that AA Reit can potentially trade at P/NAV of 1.22 times and dividend yield could compress by up to 1 per cent," it noted. The research house projects AA Reit' s full-year distribution per unit (DPU) to grow by 9 per cent in FY2022, driven by organic growth in its portfolio as well as the recent acquisitions of Sime Darby Business Centre and 7 Bulim Street. " Supported by a longer-than-average weighted average lease expiry of 3.9 years and potential redevelopment upside on selected properties, the outlook for the Reit remains bright," it added of the acquisitions. DBS further estimates that AA Reit is trading at an implied capitalisation rate of about 6 per cent, which it says makes it an attractive candidate for a merger and acquisition deal. " With complementary assets, AA Reit' s portfolio of quality assets in Singapore and Australia, coupled with its untapped GFA, offers potential suitors a stable income stream and an avenue for organic growth," it said. A likely suitor is the Reit' s largest shareholder ESR Cayman, which DBS believes may consider merging the Reit with its other listed vehicle ESR Reit following its failed merger bid with Sabana Reit. " Compared to Sabana Reit, AA Reit has a larger portfolio of industrial and logistics properties that is currently valued at S$1.7 billion. Two of AA Reit' s assets are freehold properties in Australia, and this will complement ESR Reit' s ongoing plans to invest in freehold properties overseas to address the issue of the shorter land tenure of its Singapore portfolio," said DBS. https://www.businesstimes.com.sg/companies-markets/brokers-take-dbs-raises-aims-apac-reit-tp-to-s150-sees-strong-earnings-rebound

 

AIMS APAC REIT appears on radar as target for merger with ESR-REIT
FEB 5, 2021 

After a failed bid to merge with ESR-REIT with Sabana REIT, ESR Cayman may have found another suitor in the form of fast-growing industrial landlord, AIMS APAC REIT (AAREIT).

AIMS APAC REIT is a Singapore-heavy industrial REIT with a portfolio of mostly light industrial and logistics facilities across Australia and Singapore.

The REIT features a relatively longer portfolio  weighted average lease expiry  (WALE) of 3.9 years, compared to the 3.3 years exhibited by its REIT peers in the mid-cap industrial segment.

https://www.reitsweek.com/2021/02/aims-apac-reit-appears-on-radar-as-target-for-merger-with-esr-reit.html