Aims Amp Cap Industrial REIT

Aims Amp Cap Industrial REIT: issued a $100m 4-yr bond at 4.9% yday. StanChart expects the debt to be used to fund AAREIT’s ongoing Gul Way redevt. The cost is slightly higher than expectations, with the blended rate possibly inching up to 4.05% from 3.85% currently. Potentially, StanChart estimates the impact to current TP (at $1.50) could be -1.3%. Nevertheless, the house notes mgt previously said that redevt of other under-utilised assets in its portfolio could be an accretive way of growing the REIT. AAREIT is currently trading at 8.8% FY12 DPU yield. StanChart expects yields to rise to 9.7% in FY14 after 20 Gul Way’s completion. Reiterates Outperform. AAREIT is +0.4% at $1.29 .