AIMSAMPReit – BT

AIMS AMP Capital Reit Q3 DPU takes a dive

Rights issue dilutes payout from higher distributable income

AIMS AMP Capital Industrial Reit yesterday said that its distributable income for the third quarter surged 94.2 per cent year-on-year to $10.4 million, though its payout per unit fell largely on the back of its rights issues of new units.

Distribution per unit fell to 0.51 cent from 1.1368 cents a year ago – when it recorded a distributable income of $5.4 million. The number of units issued at the end of the quarter was 1.99 billion, compared with 1.5 billion over the same period a year earlier.

Gross revenue for the three months ended Dec 31 jumped 56 per cent to $19.6 million. Reit manager AIMS AMP Capital Industrial Reit Management Ltd attributed this to the additional rental income from the six properties it acquired since November 2009, and higher recovery of property tax and land rent from tenants.

With 0.1 per cent of the trust’s revenue due for renewal in the fourth quarter and ‘healthy occupancy’ of 98.5 per cent, the manager said it expects revenue for the final quarter of its fiscal year 2011 to be stable and sustainable.

Net property income rose 47.1 per cent to $14.5 million from $9.9 million a year earlier. Earnings per unit was 0.41 cent, compared with 0.8 cent a year earlier.

During the quarter, a major focus of the trust was the transaction for its acquisition of a ramp up warehouse at 27 Penjuru Lane for $161 million from AMP Capital, said Nicholas McGrath, the Reit manager’s chief executive.

This transaction, he said, ‘has resulted in a significant increase in the asset base ($818.8 million as at Dec 31, 2010) and market capitalisation ($427.2 million as at Jan 24, 2011) of the trust’.

The acquisition, which was completed in October last year, was partially funded by a fully underwritten renounceable rights issue of $79.6 million and partially funded by a new loan.

According to the Reit’s financial statement, its net asset value per unit as at end-December last year was 27 cents, compared with 31 cents on March 31, 2010.

Yesterday, the Reit’s shares closed unchanged at 21.5 cents.