4QFY16 DPU of 2.95¢ (+1% y/y, +3.5% q/q) and distribution income of $18.7m (+2.1% y/y, +3.5% q/q) came within expectations, boosted mainly by retained income and capital distribution.
Sequentially, gross revenue and NPI of $30.3m (+0.7% y/y, -6.9% q/q) and $20.4m (+0.3% y/y, -3.2% q/q), respectively, were dismal, due to lower occupancies in Dec 2015 at 27 Penjuru Lane and 8 & 10 Pandan Crescent, as well as lower contribution from the property at 8 & 10 Tuas Ave 20 due to the fire incident (pending insurance claims for loss of income on the property).
Since then, management updated that some of the vacancies at 27 Penjuru Lane have been filled.
Meanwhile, to maintain growth at the distributable level, the manager of the REIT has raised distribution policy from 90% to 100% of its Singapore income to unitholders in FY16.
Portfolio occupancy remained at 93.4% (flat q/q), with WALE of 2.93 years, while aggregate leverage inched up to 32.4% (+0.9ppt q/q), with average debt term of 2.2 years.
Going forward, the industrial leasing market is expected to remain challenging given the soft demand and oversupply supply situation in Singapore. Management disclosed a potential untapped gfa of 759,720 sf, or 12% of the existing net lettable area.
At the current price, AIMS AMP is trading at an estimated forward yield of 8.6% and 0.93x P/B.
No comments:
Post a Comment