AIMS AMP Capital Industrial REIT (SGX:O5RU) has posted a 16.3 percent year-on-year rise in Q4 Distribution Per Unit (DPU) to 3.14 cents per unit. The Q4 DPU brings the total FY2013 distribution per unit to 10.72 cents, representing a 2.6 percent year-on-year increase.

AIMS AMP REIT Posts 16.3 Percent Jump in DPU
AIMS AMP REIT's portfolio value grew from S$930.9 million in FY2012 to S$1.04 billion in FY2013

Overall distribution to unit holders rose 3.8 percent to S$48.1 million for the full year, compared to the previous year. The DPU of 3.14 cents includes a distribution amount of 0.30 cents from the capital gain arising from the divestment of 31 Admiralty Road and 0.09 cents of retained distribution from the previous three quarters in FY2013.

The Manager’s Chief Executive Officer, Mr Nick McGrath said, “We are pleased to deliver stable and growing distributions for unit holders this year despite the loss of income from the sale of 31 Admiralty Road and the redevelopment of 20 Gul Way and 103 Defu Lane 10.”

“Our focused strategy is now reaping rewards for the Trust and Unitholders. Q4 DPU was boosted by a full quarter’s rental contribution from Phase One of 20 Gul Way. In addition, we expect Phase Two of 20 Gul Way to complete in the June 2013 quarter (approximately six months ahead of schedule) and this will mean that unit holders can expect further enhanced distribution in the September 2013 quarter.”, he added.

During the financial year the Trust’s unit price performed strongly, rising 40.0 percent between 1 April 2012 and 31 March 2013 and outperforming the FTSE Straits Times REIT Index and Straits Times Index by 9.3 and 30.1 percentage points respectively.

Net property income rose 10.6 percent during Q4 FY2013 to S$15.5 million when compared to the same period last financial year, while net property income rose 1.4 percent year-on-year for the full financial year.

Mr McGrath said the Trust was strongly positioned for further growth in FY2014. “We are successfully creating and delivering growth for Unitholders by unlocking value within the portfolio with selective redevelopments, intensive asset management and
prudent capital management.”

“Global economic growth is likely to remain subdued as concerns remain over the extent of the fiscal cutback with the budget sequester in the US, as well as the potential reemergence of the debt crisis in the Eurozone. With this backdrop, we remain cautiously positive for the 2014 outlook and growth is likely to be moderate, supported by resilient domestic demand and modest growth in external demand,” Mr McGrath said.

AIMS AMP Capital Industrial REIT consists of 25 industrial properties located throughout Singapore with an appraised total value of S$1.04 billion based on valuations obtained as at 31 March 2013.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.