Aims Apac Reit 9M DPU rises 2.5% to S$0.0725 on higher rental reversions, cost efficiencies

[SINGAPORE] The manager of Aims Apac Reit (AA Reit) on Thursday (Feb 5) posted a 2.5 per cent increase in distribution per unit (DPU) to S$0.0725 for the nine months ended Dec 31, 2025. This was up from S$0.0707 in the year-ago period.

Revenue climbed 1.4 per cent on the year to S$141.1 million from S$139.1 million. This was supported by higher rental reversion and lower property expenses, primarily driven by cost efficiencies achieved during the period.

As a result, net property income rose 4.1 per cent to S$103.7 million from S$99.6 million.

Distributions to unitholders increased 3.1 per cent to S$59.3 million from S$57.5 million. They will be paid on Mar 26, 2026, after the record date on Feb 16, 2026.

Russell Ng, chief executive officer of AA Reit’s manager, noted that the completion of the Framework Building acquisition and positive contributions from recent asset enhancement initiatives continue to reinforce the portfolio’s income and resilience.

“Amid geopolitical risk and uncertainties, we successfully issued S$150 million of perpetual securities at competitive pricing of 4.1 per cent post the quarter end,” he added.

For the first nine months of FY2026, the manager of AA Reit secured 25 new leases and 49 lease renewals. This helped the real estate investment trust to achieve a rental reversion rate of 8 per cent.

Based on the third quarter of FY2026’s update, the portfolio’s occupancy growth was driven by improvements in Singapore, while Australia maintained complete stability.

As at Dec 31, 2025, the Singapore portfolio occupancy rose to 94.6 per cent, up from 92.3 per cent in the previous quarter ending Sep 30, 2025. This performance notably exceeded the JTC national industrial average of 88.7 per cent reported for December 2025.

In comparison, the Australian portfolio demonstrated continued resilience, maintaining a 100 per cent occupancy rate across both quarters. These combined results lifted the overall portfolio occupancy to 95.4 per cent as at Dec 31, 2025, an increase from 93.3 per cent in the previous quarter.

Weighted average lease expiry stood at 4.1 years, while gearing was up slightly at 36.6 per cent, from 33.7 per cent as at end-December 2024. No debt refinancing is needed until FY2027, while available funds – comprising cash and undrawn facilities – stood at about S$123.5 million, noted the manager.

It added that 65 per cent of debt is on fixed rates, and the weighted average fixed debt tenure is around 0.6 years.

Outlook

The manager noted that the Singapore industrial property market remains well-positioned due to the country’s strategic global connectivity and structural drivers of e-commerce expansion and supply chain resilience.

For its assets in Australia, it noted that demand for high-quality industrial assets in core locations is expected to remain resilient, driven by urban population growth and an expanding e-commerce ecosystem.

Units of AA Reit ended Wednesday flat at S$1.49.