AIMS APAC REIT's 2H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI saw a YoY uptick, driven by increased rentals and recoveries. Despite this, distributions to unitholders remained steady, as management opted to receive more management fees in cash. Meanwhile, DPU faced a notable decline, impacted by the enlarged unitholder base from the mid-2023 equity fundraising.

Rental Reversion

Rental reversion for 4Q and FY is at 31.7% and 24.3% respectively.

Asset Enhancement Initiatives

There are 2 ongoing AEIs, which are expected to commence lease by Q1 FY26 and Q3 FY 25 respectively.

Related Parties Shareholding

The REIT manner and directors of the REIT manager hold a relatively high proportion of shares, while the REIT sponsor holds a relatively low proportion.

Lease Profile

The WALE is long and the lease expiry is well spread. However, the weighted average land lease expiry is short.

Debt Profile

The gearing ratio is low. However, the adjusted interest coverage ratio and unsecured debt proportion are also low. Additionally, there is a high proportion of perpetual securities and a concentration of debt maturity in FY2027. 

Diversification Profile

The portfolio shows diversification in terms of sector and property but concentration in terms of geography and tenants.

Key Financial Metrics

Overall key metrics fall within the median range, with the property yield relatively high.

DPU Breakdown

• TTM Distribution Breakdown:
• 95.1% from Operation
• 4.9% from Management Fees Paid in Units

Trends

• Uptrend: Committed Occupancy
• Flat: NAV per Unit
• Slight Downtrend: DPU from Operation, Property Yield
• Downtrend: Adjusted Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

• Dividend Yield - Below -1SD for 1y; Average for 3y & 5y
• P/NAV - Above +1SD for 1y; Average for 3y & 5y

Author's Opinion

Compared to the previous half-year, gross revenue, NPI, and distributions to unitholders have increased. There's been a slight improvement in DPU, primarily due to the release of retention from 1H FY24. As for debt, note that 14.5% is due to mature in 3Q FY25.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.