- AIMS APAC REIT (SGX:O5RU) reported healthy revenue and net property income (NPI) growth in FY24, driven by strong positive rental reversions and high occupancy rates.
Revenues & NPI increased 6%-7% y-o-y.
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- Overall, AIMS APAC REIT's portfolio achieved positive rental reversions of +31.7%. Portfolio occupancy rates also remained robust at 97.8%, with the only major vacancy at International Business Park, where the occupancy rate inched down further to ~61%.
Expectations are that the positive rental reversions would persist
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- Looking ahead, ~18.1% of portfolio leases are due to expire in FY25F, with the bulk of expiries coming from the logistics & warehouse segment, which is anticipated to continue outperforming. Rental reversions are projected to remain positive, albeit likely in the high single-digit to low double-digit range.
- Furthermore, the renewal of two major master leases in FY24 contributed significantly to the strong positive rental reversions. KWE-Kintetsu World Express renewed its master lease at 7 Bulim Street for five years, while Aalst Chocolate renewed its master lease at 26 Tuas Avenue 7 for a further 10 years.
FY24 DPU of 9.36 cents, slightly below our projections.
- Read more at SGinvestors.io.
