AIMS AMP Capital Industrial REIT Ends Its Financial Year With A 7.42% Yield For Shareholders

AIMS AMPAIMS AMP Capital Industrial REIT (SGX: O5RU) is a real estate investment trust with 26 properties that focuses on industrial properties in Singapore and the Asia Pacific.

Operating Result

The REIT ended the year with a 17.5% improvement on its gross revenue at S$ 108million. Due to much lower operating expenses, the trust achieved a net income of S$ 49.95million which was 30% more than last financial year. Distribution to unitholders also improve albeit to a lesser extent by 19% to S$ 57.2million. However, due to its rights issue and private placement over the last financial year, the distribution per unit fell 1.8% to only 10.53 cents per share.

In term of leverage, AIMS AMP Capital Industrial REIT increased its leverage to 31.7% from 26.5% last year. Together with the funds raised from the private placement and rights issue, the main bulk of the funds have been used to invest in a 49% stake in Optus Centre in Australia and development cost of 20 Gul Way and 103 Defu Lane 10. Its interest cover ratio also worsens from 6.3 times to 5.2 times. The total debt cost is around 4.13% for the trust. Most of the debts are hedge through interest rate swaps.

Most of its properties are focused in warehousing and business parks. Out of the 25 properties in Singapore, 13 are leased through master leases while the rest are managed as multi-tenanted.

Going Forward

The trust is redeveloping its property in 20 Gul Way. After the redevelopment, the trust expects to recognise about S$25million in revaluation profits. Currently, the net asset value of the trust fell to S$ 1.47 per share from last quarter. AIMS AMP Capital Industrial REIT closed at S$ 1.42 per share on 6th May 2014. From the distribution this year, that would imply a distribution yield of 7.42% for the unitholders.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

The Motley Fool’s purpose is to help the world invest, better. Like us on Facebook  to keep up-to-date with our latest news and articles.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.