AIMS AMP Capital Industrial REIT: 4Q FY2012.

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.

FCOT: DPU up 16.8% in the last 18 months.

I did a piece on FCOT in October 2010 when I said that the REIT has probably turned the corner. At that time, it was trading at 15.5c a unit (which would have been 77.5c a unit, post consolidation). It closed at 87.5c in the last session.

DPU was 0.5549c then (which would have been 2.7745c, post consolidation). FCOT has declared a DPU of 3.2423c for 1H FY12 which means that DPU has increased some 16.8% from 18 months ago. It will go XD on 25 April and income distribution will take place on 30 May.

Annualised, we are looking at a distribution yield of 7.4% at a unit price of 87.5c.

Distributable income increased 7.7% YoY to S$15.9m as a result of lower interest expenses.

Average portfolio occupancy eased marginally to 96.1% from 97.6% seen in 1Q.

Weighted average lease to expiry as at 31 Mar was maintained at 3.4 years, with 17.0% of its leases due to expire in FY12.

NAV/unit: $1.33

Gearing: 36.1%

Interest cover ratio: 3.25x.

Related post:
FCOT: Turning around.

See OCBC Research: here.

See presentation slides: here.