AIMS APAC REIT *Official* (SGX:O5RU)

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Aims Apac Reit posts 12.5% rise in Q1 DPU to 2.25 S cents​


https://www.businesstimes.com.sg/real-estate/aims-apac-reit-posts-125-rise-in-q1-dpu-to-225-s-cents
AIMS Apac Reit's distribution per unit (DPU) rose by 12.5 per cent to 2.25 Singapore cents for its first quarter ended June 30, 2021, from two cents for the same period a year ago.

Gross revenue of the real estate investment trust (Reit) was up 16.8 per cent to S$31.8 million for the quarter, from S$27.2 million a year ago.

The growth was mainly contributed by new leases at its recently acquired 7 Bulim Street property, and higher rental and recoveries from two of its other properties, 20 Gul Way, and 8 and 10 Pandan Crescent, the Reit's manager said in a bourse filing on Wednesday.

Net property income grew 23.9 per cent on year to S$23.1 million, from S$18.6 million.

Distributable income rose 12.6 per cent on year to S$15.9 million from S$14.1 million.

The Reit's manager expects the distribution will be paid out on Sept 22, after the record date on Aug 6.

Chief executive of the Reit's manager Koh Wee Lih noted that the Reit's portfolio, focused in the warehouse and logistics sector, has seen high resilience in the quarter due to positive demand for logistics and warehouse spaces amid the pandemic.

Chairman of the Reit's manager George Wang said: "We will continue to evaluate total return investment opportunities in our core markets of Singapore and Australia which offer sustainable income yield and good capital growth potential."

"Additionally, to expand our focus across a greater range of assets that offer different risk and return profiles, we will also continually seek new capital and business partners as we move ahead," Mr Wang added.

In the quarter, the manager said it successfully executed 38 new and renewal leases representing 72,715 square metres (sq m) or 9.8 per cent of total net lettable area, to lead to a portfolio occupancy of 95.7 per cent and a weighted average lease expiry (WALE) of 3.98 years, as at June 30.

It expects its occupancy rate will be sustained “as strong demand for logistics and warehouse facilities continue to be underpinned by e-commerce, stockpiling and shifts in supply chain”.

In January, the Reit also announced the acquisition of a property at 315 Alexandra Road for S$102 million.

The manager added it will also continue to be “prudent and selective” with the Reit’s cash flow, with priority granted to crucial asset enhancements and deferment of non-critical capital expenditure. Aggregate leverage of Aims Apac Reit is at 34.3 per cent.

The Reit also separately announced that it would change the reporting of its financial results to a half-yearly basis, with its next announcement being for the six-month period ending Sept 30, 2021.

It will, however, still pay distributions to unitholders on a quarterly basis, the manager said.

Units of Aims Apac Reit closed flat at S$1.55 on Wednesday.
 
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RHB ups AIMS APAC REIT's TP to $1.72 on strong fundamentals​


https://www.theedgesingapore.com/ca...ps-aims-apac-reits-tp-172-strong-fundamentals
RHB Group Research has kept “buy” on AIMS APAC REIT with a higher target price of $1.72 from $1.70 previously, on strong fundamentals.

The new target price represents an upside of 22% from the REIT’s last-closed share price of $1.41 on Oct 5, and a yield of 7%.

The REIT has recently seen an 11% drop in its share price over the last one month, mainly on concerns over its recent management changes, major shareholder sell-downs and acquisition delays and pricing.

However, RHB analyst Vijay Natarajan believes that the concerns are “transient in nature” and does not alter the REIT’s strong business fundamentals.

To Natarajan, AIMS APAC REIT remains an “attractive play on the industrial and logistics sector”, as it is trading at an attractive 1 times price-to-book value (P/BV).

The REIT’s recent induction into the FTSE EPRA Nareit Index is also a positive re-rating factor.

On the REIT’s proposed acquisition of Woolworths’ headquarters in Sydney on Sept 30, Natarajan says the asset’s long weighted average lease expiry (WALE) of 10 years and blue chip tenant quality more than compensates for the aggressive pricing and slightly lower initial net property income (NPI) yield.

“Additionally, there is a strong redevelopment potential (up to four times the current size) and leases also come with built-in rent escalations of 2.75% per annum, with up to 20 years of extension options,” he writes in an Oct 6 report.

Natarajan also notes that the proposed acquisition of 315 Alexandra Road, which is still expected to go through despite delays, will increase the REIT’s gearing to 42% assuming 100% debt funding.

On this, he believes that there is a medium-term possibility of $50 million to $100 million in equity fund raising.

To this end, Natajaran has lowered his distribution per unit (DPU) estimate for the FY2022 by 2%. He has, however, increased his DPU estimate by 1% for the FY2023 to FY2024, factoring in the latest deal and delays to the acquisition of 315 Alexandra Road.

“Based on our proprietary in-house methodology we derive an environmental, social and governance (ESG) score of 3.2 out of 4.0 for AA REIT. As this is higher than the country median score (3.0), we have applied a 4% ESG premium to our DDM-derived intrinsic value,” he says.

Units in AA REIT closed 2 cents higher or 1.42% up at $1.43 on Oct 6, or an FY2022 P/B of 1.01 times and dividend yield of 6.9%.
 
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mrclubbie said:

RHB ups AIMS APAC REIT's TP to $1.72 on strong fundamentals​


https://www.theedgesingapore.com/ca...ps-aims-apac-reits-tp-172-strong-fundamentals
RHB Group Research has kept “buy” on AIMS APAC REIT with a higher target price of $1.72 from $1.70 previously, on strong fundamentals.

The new target price represents an upside of 22% from the REIT’s last-closed share price of $1.41 on Oct 5, and a yield of 7%.

The REIT has recently seen an 11% drop in its share price over the last one month, mainly on concerns over its recent management changes, major shareholder sell-downs and acquisition delays and pricing.

However, RHB analyst Vijay Natarajan believes that the concerns are “transient in nature” and does not alter the REIT’s strong business fundamentals.

To Natarajan, AIMS APAC REIT remains an “attractive play on the industrial and logistics sector”, as it is trading at an attractive 1 times price-to-book value (P/BV).

The REIT’s recent induction into the FTSE EPRA Nareit Index is also a positive re-rating factor.

On the REIT’s proposed acquisition of Woolworths’ headquarters in Sydney on Sept 30, Natarajan says the asset’s long weighted average lease expiry (WALE) of 10 years and blue chip tenant quality more than compensates for the aggressive pricing and slightly lower initial net property income (NPI) yield.

“Additionally, there is a strong redevelopment potential (up to four times the current size) and leases also come with built-in rent escalations of 2.75% per annum, with up to 20 years of extension options,” he writes in an Oct 6 report.

Natarajan also notes that the proposed acquisition of 315 Alexandra Road, which is still expected to go through despite delays, will increase the REIT’s gearing to 42% assuming 100% debt funding.

On this, he believes that there is a medium-term possibility of $50 million to $100 million in equity fund raising.

To this end, Natajaran has lowered his distribution per unit (DPU) estimate for the FY2022 by 2%. He has, however, increased his DPU estimate by 1% for the FY2023 to FY2024, factoring in the latest deal and delays to the acquisition of 315 Alexandra Road.

“Based on our proprietary in-house methodology we derive an environmental, social and governance (ESG) score of 3.2 out of 4.0 for AA REIT. As this is higher than the country median score (3.0), we have applied a 4% ESG premium to our DDM-derived intrinsic value,” he says.

Units in AA REIT closed 2 cents higher or 1.42% up at $1.43 on Oct 6, or an FY2022 P/B of 1.01 times and dividend yield of 6.9%.
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Thanks, all good news
 
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Andrew833

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$Aims Apac Reit(O5RU.SI)
3Q and 9M result;
Gross Revenue up 13%+
Net Property Income up 14%+
DPU up 14%+
Portfolio Value up 29.5% (YoY)
Gearing Ratio up 3.4%
Fixed Rate Debts 57% (abit low)
Overall very well manage, FY2022 and 2023 debts only left 9.7%.
Dividend is 2.35 cents. Huat ah!
 
Shion

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Aims Apac Reit's plan to acquire Sime Darby Business Centre falls through​


https://www.straitstimes.com/busine...uire-sime-darby-business-centre-falls-through
SINGAPORE (THE BUSINESS TIMES) - Aims Apac Reit's manager announced on Monday (July 4) in a bourse filing that its plan to acquire Sime Darby Business Centre has fallen through.

Both the purchaser and vendor will not be going through with the deal as "renegotiation of the principal terms and conditions of the acquisition was not concluded", said the real estate investment trust's (Reit) manager, hence necessary regulatory approvals were not obtained by the target date of July 1.

Additionally, since the option agreement to purchase the property at 315 Alexandra Road has lapsed, the Reit will be entitled to a refund of the $1.02 million option fee it paid earlier, said the manager in the update.

The facility is anchored by Sime Darby Property Singapore, a wholly owned unit of Malaysian property developer Sime Darby Property. Aims Apac Reit had in January 2021 announced plans to acquire the premium showroom and business-space site in Alexandra Road for $106.6 million.

Units of Aims Apac Reit closed flat at $1.35 on Friday.
 
Shion

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AIMS APAC REIT divests 541 Yishun Industrial Park A for $12.9 mil​


https://www.theedgesingapore.com/ne...it-divests-541-yishun-industrial-park-129-mil
AIMS APAC REIT O5RU -0.72% has divested 541 Yishun Industrial Park A for $12.88 million. The sale price represents an 8.2% premium to the property’s valuation of $11.9 million as at March 31.

The sale was made via a sale and purchase agreement (SPA) between the REIT’s trustee, HSBC Institutional Trust Services (Singapore) Limited, and Cantal United Pte Ltd.

The net proceeds from the divestment will be used to repay the REIT’s debt initially and may be recycled for asset enhancement initiatives (AEIs), redevelopment opportunities and selective acquisitions.

The property is a four-storey factory building with a total gross floor area of 8,770 sqm (94,399.49 sq ft) on a land site of 6,851 sqm. According to the REIT manager, the property has limited redevelopment potential with a remaining land lease tenure of about 31 years as at March 31.

The REIT manager is entitled to a divestment fee of 0.5% of the sale price in accordance with the REIT’s trust deed. The divestment is targeted to be completed by the third quarter of 2023.

Following the divestment, AA REIT’s portfolio will comprise 28 properties across Singapore and Australia.

This divestment is part of our proactive asset management strategy to optimise and rejuvenate AA REIT’s portfolio. Amid the current macroeconomic uncertainties, we remain focused on various organic growth initiatives, which cumulatively, will continue to underpin our strong operating performance and long-term income resilience of AA REIT,” says Russell Ng, CEO of the manager.

Units in AA REIT closed 1 cent higher or 0.73% up at $1.38 on April 24.
 
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