Friday, January 20, 2012

AIMS Industrial REIT: 3Q results

AIMS industrial REIT results are out today. Investors were quite positive about the results, AIMS closed at $1.01 (up 1%) today.

A dividend of 2.6c per unit is declared for the period Oct - Dec 2011. Ex-date is 3 Feb 2012 and payable on 20 March 2012.
Even though there was a sale of the 31 Admiralty Road property, there was an increase in DPU. The property was also sold 8.9% above book value and 22.7% above the REIT's initial purchase price of 13.4M

Link to presentation slides

Some points to note:
1) Weighted average lease expiry of 2.6 months.
Actual breakdown: Next debt due: 138M at Oct 2013, followed by 28.8M at Feb 2014 and 111.5M at Oct 2015.

2) Redevelopment works at 20 Gul Way progressing according to schedule and within

Once the redevelopment is complete, it is likely that we will see an increase in DPU.

3) High occupancy rate of 98.9%
Comparing to other occupancy rates:
  • a) factory space: 93%
  • b) Warehouse space: 93.6%
  • c) URA industrial space: 93.3%

4) average security deposit per property of approximately 8.4 months
This will give AIMS REIT ample time to find a new tenant in the event major tenants pull out.

5) Long land lease to expiry
The earliest expiry we see is 21-30 years time, which is only 10.9% of the net lettable area

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