- While we still see positive rental growth extending into 2024, especially from its logistics ramp-up, contribution from asset enhancements (AEI) and redevelopment will likely drive growth.
- AIMS APAC REIT (SGX:O5RU) posted 3QFY24 DPU of S$2.34 cents, 0% q-o-q/-9.7% y-o-y mainly on an enlarged unitholder base from its equity raising. 9MFY24 DPU of S$6.99 cents forms 76% of our full year estimate.
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Stable operating metrics
- Portfolio occupancy held up at 98.1%. In 3Q24, AIMS APAC REIT inked renewal leases with KWE (~6% GRI) and 16 others at +13% rental reversion. Logistics assets continued show the highest reversions (+13.5%), followed by industrial assets (+7.9%).
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- WALE stood at 4.6 years as of 3Q24, with WALE for logistics at an extended 2.4 years. We like the strengthened lease profile in view of supply building up.
- Leasing demand for business park remains tepid. Nonetheless management does not expect downside surprise from 1A IBP. Australian BP assets (Optus Centre and Woolworths) remain 100% leased.
Growth prospects
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