Aims Apac Reit 3Q FY2022 Results

 

Aims Apac Reit (SGX.O5RU) announces its 3Q FY2022 results today.

Most importantly for unitholders, dividend per unit (DPU) increases 14.6% Year-on-Year to 2.35cents compared to 2.05 cents in 3Q FY2021.

The DPU of 2.35 cents will be paid on 25 Mar 2022.

Gross Revenue and Net Property Income rises by more than 14% compared to 3Q FY2021. This is mainly due to the acquisition of Woolworths Headquarters in New South Wales, Australia and higher gross revenue from 20 Gul Way, 27 Penjuru Lane and 541 Yishun Industrial Park A (rental contribution from new master tenant commenced on Jan 2021).

Portfolio committed occupancy remains high at 97.6%, well above JTC industrial average of 90. 1%, and decent WALE at 4.85 years.

10 new and 8 renewal leases were successfully executed in 3Q FY2022 at slight positive rental reversion of 0.2%.

Gearing ratio is 37.3% with undrawn credit facility and war chest of $237.2m. Blended funding cost is slightly high at 2.8% per annum. Adjusted interest coverage ratio is decent at 3.3 times.

Moving forward, the broad economic recovery of Singapore and Australia will provide demand and support for the industrial sector, particularly manufacturing and business park space.

I believe that Aims Apac Reit is a great underrated small industrial Reit to hold for the long-term and it should continue to deliver more than 6% of dividend yield while panning for its value to be unlocked and the economy to recover.

Thanks for reading. Stay safe and be strong as always. 

With love & peace, 

Qiongster