Ratings agency Standard & Poor’s has reaffirmed Singapore-listed AIMS AMP Capital Industrial REIT's (AIMS AMP REIT) (SGX:O5RU) investment grade credit rating of BBB-.

AIMS AMP Capital Industrial REIT consists of consists of 25 industrial properties located throughout Singapore.

A rating of BBB- is indicated in Standard & Poor's credit rating definitions as "lowest investment grade by market participants". This generally means that the REIT has adequate capacity to meet its financial obligations but is subject to adverse economic conditions.

AIMS AMP REIT has attributed the rating to its portfolio of industrial assets that is seeing improved lease expiry profile, extended debt maturity and stable cash flows.

“The Trust is well positioned for the next phase of growth. Since raising $110 million by way of private placement in April this year, gearing has fallen to 23.9 percent, which is well below our target range of between 30 to 40 percent", said Mr. Nick McGarth, Chief Executive Officer of AIMS AMP Capital Industrial REIT.

“We remain focused on actively managing the Trust’s capital position to create long term value for unit holders,” he added.

As at 31 March 2013, the Manager maintained an average of 31 percent gearing for 14 consecutive quarters, demonstrating a consistent approach to capital management.

Units of AIMS AMP REIT have closed flat from its previous close of S$1.84 on the Singapore Exchange.

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.