AIMS APAC REIT (O5RU) H1 2025 earnings summary

Executive summary

• Gross revenue rose 7.7% year-over-year to S$93.5 million for 1H FY2025, driven by higher rental, recoveries, and electricity income from Singapore properties and strong rental reversions.

• Net property income increased 5.1% to S$67.6 million, with a margin of 72.3% (down from 74.0% due to higher operating expenses).

• Distributions to unitholders grew 5.0% to S$38.0 million, with DPU up 0.4% to 4.670 Singapore cents despite a larger unitholders base.

• Portfolio occupancy remained high at 95.0%, with a weighted average lease expiry (WALE) of 5.0 years and committed leases occupancy at 96.7% excluding asset enhancement initiatives and tenant transitions.

• Portfolio rejuvenation and growth strategies, including asset enhancement initiatives, are progressing well to support long-term value.

Financial highlights

• Net income before joint venture profits was S$40.5 million, up 5.1% year-over-year.

• Share of profits from joint venture (Optus Centre, Australia) was S$7.4 million.

• Aggregate leverage at 33.4% as of 30 September 2024, with an interest coverage ratio of 4.0x.

• Net asset value per unit was S$1.30 as at 30 September 2024.

• 11 new and 29 renewal leases executed, totaling 82,623 sqm, representing 10.6% of total portfolio NLA.

Outlook and guidance

• Management remains optimistic, citing strong demand for modern industrial and logistics assets in Singapore and resilient Australian assets supported by long-term leases and infrastructure investments.

• The new S$400 million and A$150 million Sustainability Linked Loan provides financial flexibility for acquisitions and asset enhancements.

• US Federal Reserve cut rates by 50bps in September 2024, while Singapore's GDP grew 4.1% YoY in Q3 2024, supporting a positive macroeconomic outlook.