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AIMS AMP Capital Industrial REIT: 4Q FY2012.

Friday, April 20, 2012

AIMS AMP Capital Industrial REIT has declared a DPU of 2.7c for 4Q FY2012. Total DPU for FY2012 is, therefore, 10.45c. At the last session's closing price of $1.185 a unit, this means a distribution yield of about 8.82%. The REIT goes XD on 2 May and will distribute income on 19 June.

Gearing: 30% (which would drop to 28.8% upon completion of sale of 31 Admiralty Road). 25 properties revalued upwards and this probably helped to lower the REIT's gearing.

NAV/unit: $1.406.

Interest cover ratio: 6.2x

Occupancy: 99.2%.

Weighted average land lease expiry: 41.7 years.

Weighted average lease expiry (WALE): 2.62 years.

Average security deposits: 8.1 months.

The REIT also saw positive rental reversions of 10 to 15% in FY2012.

With 38.9% of leases expiring in 2013, the management has either commenced negotiations to extend the leases with tenants and sub-tenants or completed re-leasing for the affected properties. It is also good to know that 88.2% of Master Leases expiring in 2013 are supported by underlying sub-leases.

The REIT is offering a Distribution Reinvestment Plan this time. For unitholders who would like to own more units at current prices without having to pay any brokerage fees, this is probably a good thing.

"By the implementation of the Distribution Reinvestment Plan, the Manager is providing Unitholders with an option to receive Distributions, either in the form of Units or cash or a combination of both, declared on the Units held by Unitholders. It enables Unitholders to acquire additional Units without having to incur transaction or other related costs.

"AIMSAMPIREIT will also benefit from Unitholders’ participation in the Distribution Reinvestment Plan as, to the extent that Unitholders elect to receive distributions in the form of Units, the cash is retained by AIMSAMPIREIT to fund its continuing growth and expansion. The retention of cash and the issue of Units in lieu of cash under the Distribution Reinvestment Plan will also enlarge AIMSAMPREIT’s capital base, strengthen its working capital reserves and improve the liquidity of Units."

Personally, I would not be taking part as I am investing for income. Also, I am not looking to increase my long position at current prices.

See presentation slides: here.

See announcement on Distribution Reinvestment Plan: here.

Related posts:
1. AIMS AMP Capital Industrial REIT: 3Q FY2012.
2. AIMS AMP Capital Industrial REIT: Accumulate on weakness.


SnOOpy168 said...

I am with you too AK. Not participating in the Reinvestment thingy. Simply becoz I dun like the possibility of odd lots and entry price timing for when the units are calculated. Unless there is a discount toward the market price, then I am keen to look into.

Huat ah.

SnOOpy168 said...

"Distribution payment date 19 June 2012"... 2 months wait ....

AK71 said...

Hi SnOOpy168,

There could be a token discount. There is no reason for a big discount to be given. :)

We get paid once every three months; you should be used to it by now. ;)

INVS 2.0 said...

Hi Ak71,

Once again, I am impressed by AIMS. From 2.5 to 2.6 and now 2.7. They seem to let shareholders enjoy an increment of 0.1 for every quarterly payout. :D

I am not opting for the reinvestment plan too. I can use the cash to buy more shares when the market decides to slide downtrend. :)

AK71 said...

Hi INVS 2.0,

The final quarter's DPU is always higher as the first 3 quarters always see the REIT paying out 90+% of its income, not 100%. All remaining income is paid out in Q4. ;)

I share your sentiments with regards to the reinvestment plan. :)

JCK said...

2.7 cents! Very nice!

i was expecting it just to maintain 2.6 cents...

AK71 said...


Yes, anything higher is a bonus. ;)

ZHANG Zheng said...

Thank you for sharing your viewpoints, as always. It is helpful.

I used to take part in Cambridge's DRP for 3 times. Now I realize it is not a good idea as the share price may not be cheap.

On 19th Apri 2012, AIMS REIT announce a change in Chairman from Mr. George Wang to Mr. Andrew Bird. Do you have any take on such leadship transition?

Thank you very much.

AK71 said...

Hi Zhang Zheng,

Yes, I would like to buy more units of this REIT when I think its unit price is cheap. Although I do not think its unit price is expensive now, I do not think it is cheap either.

AIMS remains one of the two sponsors of the REIT and Mr. George Wang is the one driving AIMS. So, he is likely to continue asserting his influence in the REIT. :)

JCK said...


Do you think the DPU of 2.7cents
can be maintained?


AK71 said...


AIMS AMP Capital Industrial REIT usually pays out 90% or slightly more from 1Q to 3Q. Then, in 4Q, they pay out all the income available (including what was not distributed from 1Q to 3Q). So, 4Q DPU is usually higher.

So, I do not expect the DPU of 2.7c to be repeated in the next Q. Everything remaining equal. 2.6c would be more likely.

However, for the longer term investor, it pays to note that DPU is likely to see a significant increase due to completion of redevelopment works over the next two years.

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