AIMS AMP Capital Industrial Reit

AIMS AMP Capital Industrial Reit: 1QFY14 DPU was 2.5c (flat yoy), in line with DMG's forecast, and would have been higher if not for the Apr new unit placement. Revenue jumped 17% yoy to $24.5m, while net property income rose 5.7% to $15.7m. This was mainly driven by additional rental contribution from Phase One of 20 Gul Way as the property started earning income from the start of 2013, higher rental rates (+14.2% on expired leases) and the recovery of 27 Penjuru Lane and 8 & 10 Pandan Crescent, which reverted to multi-tenancy properties. During the quarter, AAREIT received its TOP for Phase Two of 20 Gul Way, 7 mths ahead of schedule. This should provide a boost to next quarter's earnings. DMG pencils robust DPU growth in FY14/15, underpinned by the expected completion of 103 Defu Lane, and extension of Phase 2 at 20 Gul Way by mid 2014. The house maintains at Buy with TP $1.81.