AIMS APAC REIT property at 20 Gul Way. (Photo: AIMS APAC REIT)AIMS APAC REIT property at 20 Gul Way. (Photo: AIMS APAC REIT)

Singapore mainboard-listed industrial REIT AIMS AMP Capital Industrial REIT (AIMS AMP REIT) (SGX:O5RU) announced on 19 November that five of its properties, with a total value of SGD283.6 million, have been legally freed from serving as bank security.

The properties in question are 8 & 10 Pandan Crescent, 1A International Business Park, 11 Changi South Street 3, 1 Kallang Way 2A and 10 Soon Lee Road.

CEO of the REIT’s manager, Koh Wee Lih has described the freeing of the assets as a move that provides AIMS AMP REIT with greater financial flexibility.

“The release of these assets reflects our banking syndicate’s confidence in the trust’s solid financial position. Our interest cover ratio for 2Q FY2015 is a healthy 4.2 times, well above our bank covenant of 2.5 times”, said Koh.

“The trust is in a strong financial position, with growing cash flows, high occupancy and an attractive development pipeline. Releasing these assets provides further financial flexibility and strengthens the balance sheet,” he said.

The REIT however has stopped short of elaborating on what it plans to do with the improved financial flexibility.

AIMS AMP REIT maintained aggregate leverage of 32.2% as at 30 September 2014, averaging approximately 30% for 20 consecutive quarters since December 2009.

Units of AIMS AMP REIT are currently listed on the Singapore Exchange at SGD1.43.

AIMS AMP Capital Industrial REIT property at 20 Gul Way.
AIMS AMP Capital Industrial REIT property at 20 Gul Way.

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.