AIMS APAC REIT Delivers 2.5% YoY DPU Growth for 9M FY2026: Key Details for Investors

Strong Financial Performance and Distribution Growth

AIMS APAC REIT (AA REIT) has reported a robust set of results for the nine months ended 31 December 2025 (9M FY2026), underscoring the strength of its diversified industrial and business park portfolio in Singapore and Australia. Key highlights include:

• Distribution per Unit (DPU) increased by 2.5% year-on-year (YoY) to 7.250 Singapore cents.
• Net Property Income (NPI) rose 4.1% YoY to S\$103.7 million.
• Distributions to Unitholders climbed 3.1% YoY to S\$59.3 million.
• Gross revenue was up 1.4% YoY at S\$141.1 million.

The results were driven by proactive asset management, higher rental reversions, and cost efficiencies that helped reduce property expenses.

Portfolio and Occupancy Updates

• Portfolio occupancy improved to 95.4% as at 31 December 2025, up from 93.3% at the prior quarter-end. When including committed leases, occupancy would have been 96.6%.
• The Manager executed 25 new and 49 renewal leases during the period, covering 161,420 sqm, or 20.5% of the portfolio’s net lettable area.
• Rental reversions were strongly positive at 8.0% for 9M FY2026.
• The portfolio is highly diversified with 188 tenants across several industries, and 82.7% of gross rental income is derived from essential and defensive sectors.
• 76.4% of gross rental income comes from Singapore assets, while the Australian portfolio is anchored by high-quality, long-term leases.

Strategic Acquisitions and Asset Enhancement

• AA REIT completed the acquisition of the Framework Building, a strategic industrial property at 2 Aljunied Avenue 1, Singapore. This asset offers flexible configurations to attract tenants in manufacturing, life sciences, and high-tech sectors.
• Recent asset enhancement initiatives and acquisitions are cited as key drivers for the REIT’s improved income resilience and growth potential.

The successful integration of these assets is expected to strengthen portfolio performance and provide further upside as the Manager seeks to deepen exposure in key growth sectors.

Capital Management and Financial Flexibility

• Aggregate leverage stood at 36.6% as at 31 December 2025, providing significant debt headroom for future growth initiatives. Notably, there is no debt refinancing required until FY2027.
• Cash and undrawn committed facilities total S\$123.5 million.
• Weighted average debt maturity is 2.3 years, with an interest coverage ratio of 2.6 times (or 4.7 times, excluding perpetual securities-related distributions).
• Blended debt funding cost declined to 4.1% from 4.4% a year ago, reflecting effective refinancing strategies.
• 65% of borrowings are hedged, and 74% of expected Australian dollar distributable income is hedged into Singapore dollars over a rolling four-quarter basis, reducing FX volatility.

Key Capital Market Transaction:

• Issued S\$150 million of subordinated perpetual securities at a competitive rate of 4.10%, with proceeds partially used to refinance existing S\$250 million perpetual securities (previously at 5.375%). This results in lower funding costs and improved financial flexibility, which is potentially price-sensitive due to its positive impact on distributable income and future growth capacity.

Distribution Details

• The distribution for 1 October 2025 to 31 December 2025 is set at 2.530 cents per unit (comprising 2.260 cents taxable income and 0.270 cents capital distribution).
• Record date: 16 February 2026 | Payment date: 26 March 2026

Market Outlook and Sector Trends

Macroeconomic and Policy Backdrop

• US Federal Reserve has kept rates steady at 3.50%–3.75% after multiple cuts, with future actions dependent on economic data.
• Monetary Authority of Singapore left policy unchanged, with GDP growth expected to ease in 2026 after a strong 2025. Manufacturing, especially biomedical and electronics, remains a key growth engine for Singapore’s industrial property market.
• Reserve Bank of Australia raised the cash rate target to 3.85%. Demand for high-quality industrial assets remains resilient, supported by urban growth and e-commerce expansion.

Key Sector Developments

• AA REIT’s business parks in Sydney (Macquarie Park, Bella Vista) are benefiting from infrastructure investments and the rise of data centres, leveraging sectoral tailwinds in AI and digital storage.
• The focus on accretive acquisitions and exposure to sectors like advanced manufacturing, life sciences, and electronics positions the REIT for sustainable, long-term growth.

Strategic Priorities and Execution

• The Manager is executing a four-pillared strategy aimed at delivering value to unitholders through proactive asset management, prudent capital management, portfolio diversification, and disciplined investment.
• With a stable and growing portfolio, strong financial metrics, and strategic sector exposure, AA REIT is well-placed to seize future growth opportunities, both organically and through acquisitions.

Important Considerations for Investors

• AA REIT’s ability to maintain high occupancy, strong rental reversions, and increase DPU amidst volatile market conditions reflects operational resilience and management strength.
• The refinancing of perpetual securities at a lower cost is a significant, potentially price-sensitive development that directly benefits distributable income and enhances future growth flexibility.
• No major debt maturities until FY2027 reduces short-term refinancing risk.
• The REIT’s large proportion of tenants in essential sectors provides income stability and buffers against economic shocks.
• Investors should monitor macroeconomic policy signals (interest rates, FX trends) as well as sectoral demand in logistics, manufacturing, and technology, which underpin portfolio performance.

Distribution Details at a Glance

Outlook

With a robust balance sheet, disciplined capital management, and a proactive acquisition pipeline, AA REIT is strategically positioned to deliver sustainable, growing returns to unitholders. The lowering of funding costs via the latest perpetual securities issuance, coupled with high occupancy and sectoral tailwinds, could be share price accretive if sustained.

Contact Information

• Media: Jonathan Yeoh / Natalie Loh, Teneo, Tel: +65 6955 8873, Email: [email protected]
• Investor Relations: AA REIT Management Limited, Tel: +65 6309 3638, Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. The past performance of AIMS APAC REIT is not indicative of future results. Investors are advised to review all official announcements, consider their own financial circumstances, and consult with professional advisors before making investment decisions. This article may contain forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those expressed or implied.

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