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AIMS AMP Capital Industrial REIT: 3Q FY2012.

Friday, January 20, 2012

AIMS AMP Capital Industrial REIT delivered a solid set of results with DPU at 2.6c. This is a 4% increase over the previous quarter.

As I was expecting a DPU of 2.5c with a possibility of a small reduction, this is good news indeed. It will go XD on 3 Feb and is payable on 20 Mar.


Upon completion of sale of 31 Admiralty Road for $16.438m, the REIT's gearing would drop to 29.4%. The REIT had purchased this building for $13.4m. So, the REIT will recognise a gain and have gearing comfortably under 30% at the same time.

NAV per unit: $1.367
Interest cover ratio: 5.6x
Occupancy: 98.9%
Average land lease expiry: 41.9 years
(Only 10.9% of nett lettable area will see land lease expiry within the next 21 to 30 years).

The REIT has no debt due until October 2013.

Expectations for very slow growth in 2012 is unlikely to be too challenging as REITs are generally able to weather zero growth environments. The REIT also collects an average of 8.4 months in security deposits per property.

At the recent high of $1.00 per unit, its annualised distribution yield is 10.4%. This could increase in 2013, everything remaining equal.

I am confident of the REIT as a strong passive income generator and it remains a core component of my portfolio.

See presentation slides: here.

Related post:
AIMS AMP Capital Industrial REIT: Partial divestment.

18 comments:

Kyran said...

Haha $364 for my 14 lots!

AK71 said...

Hi Kyran,

Nice! That would be enough to cover my expenses for a couple of weeks at least. :)

INVS 2.0 said...

Hi Ak71,

Any news on Sabana yet? :)

INVS 2.0 said...

...continued

I can still take advantage of the DPU if I bought in shares before the ex-date on 7th Feb?

AK71 said...

Hi INVS 2.0,

Sabana REIT will release its results this evening. :)

AIMS AMP Capital Industrial REIT goes XD on 3 Feb. So, all purchases till 2 Feb will be eligible for the income distribution just declared. I know what you are thinking of. ;)

Anonymous said...

But usually once XD the share price will fall back by the same quantum?

AK71 said...

Hi Anonymous,

It could happen, of course. Sometimes, it falls by a bigger quantum than the DPU. Sometimes, less. In bullish conditions, price could remain unchanged or, indeed, appreciate. ;)

Could you leave your name or initials in future comments? Thanks.

Ray said...

great news. unfortunately i couldnt afford that many lots.

AK71 said...

Hi Ray,

Accumulate slowly and steadily. You gonna win the race. Hehehe... ;p

Mad Stranger said...

AIMS has the best yield among other reits, and is well below its NAV. Increasing DPU too.. =)

AK71 said...

Hi Mad Stranger,

Indeed, the REIT has come a long way in proving its detractors wrong.

I would buy in again if another bout of weakness should come to pass. :)

YS said...

Hi AK, is there a resource where you can obtain CD, XD dates for for all reits? Also, are these dates for each reit usually fixed every year? Seems like there always a run up is reit price just before CD dates. How do I ensure I don't miss the boat the next time?

AK71 said...

Hi YS,

You could refer to past income distributions' announcement dates to estimate when future announcements might be made, of course.

Go to SGX to check regularly for news on REITs:

SGX: REITs

Jack said...

Hi YS, for XD/payout date, you can refer to:

http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/corporate_action

The Chew Clan said...

hi ASSI,
I've been visiting your blog so sometime now, thanks!

Any idea for the jump in AAREIT prices today? it went to 1.10 before coming back to 1.05...

AK71 said...

Hi The Chew Clan,

There is no accounting for Mr. Market's mood swings really.

Maybe, Mr. Market has realised that the REIT is worth more or, perhaps, Mr. Market is being perverse to lure more into buying at higher prices...

JCK said...

Any news on AIMS?
Seems to be going up each passing day! :)

Not that i am complaining! :)

AK71 said...

Hi JCK,

I have been way too busy with other aspects of my life. So, I have not been looking.

However, I have a couple of friends who would buzz me when stuff happens and I know AIMS AMP Capital Industrial REIT's unit price has been doing well.

Mr Market has woken to the value presented by this REIT and it feels good to be vindicated. :)

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