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

Ratings agency Standard & Poor’s (S&P) has reaffirmed its investment grade rating of ‘BBB-’ with stable outlook on Singapore-listed industrial REIT, AIMS AMP Capital Industrial REIT.

In giving the rationale for the rating, S&P pointed to the REIT’s steady cash flows over the next 12 - 24 months as a contributing factor.

“[AIMS AMP Capital Industrial REIT’s] asset quality is good but suffers from some asset concentration”, said the agency in a report. “With no major acquisitions since 2011, except for a partial stake in the Optus Centre in 2014, the REIT's top four assets contribute more than 50% of its revenue”.

“However, we believe that this risk is mitigated through [AIMS AMP Capital Industrial REIT’s] continuous improvement of its portfolio through various asset enhancement initiatives, redevelopment projects, and divestments of smaller lower-yielding assets over the past few years”, the agency added.

Units of AIMS AMP Capital Industrial REIT finished the trading day 0.75% higher from its previous close to end at SGD1.36.

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.