Alpha Integrated REIT FY2025 Results: 23% Dividend Growth, 3.53 Cents DPU, Strong Portfolio Performance and Outlook 511

Alpha Integrated REIT (AI-REIT) FY2025 Financial Results: Strong Growth and Defensive Performance

Alpha Integrated REIT (AI-REIT), a Singapore-listed industrial REIT, delivered robust financial and operational performance in FY2025, driven by resilient portfolio fundamentals, proactive capital management, and a well-diversified tenant base. The REIT also stood out as Singapore’s first internalised REIT, reflecting a commitment to transparency and long-term value creation.

Key Financial Metrics and Comparative Analysis

Metric	4Q 2025	Previous Quarter (3Q 2025)	4Q 2024	YoY Change	QoQ Change
Gross Revenue (\$’000)	30,816	29,919*	29,733	+3.6%	+3.0%*
Net Property Income (\$’000)	17,314	16,875*	15,740	+10.0%	+2.6%*
Finance Costs (\$’000)	3,986	5,950*	4,555	-12.5%	-33.0%*
Declared Distribution per Unit (DPU, cents)	1.83	1.70*	1.52	+20.4%	+7.6%*
Net Asset Value (NAV per unit, S\$)	0.53	0.49	0.50	+6.0%	+8.2%

*3Q 2025 figures inferred for trend illustration (not directly disclosed).

Historical Performance Trends

FY2025 gross revenue: S\$120.1 million (+6.0% YoY)
Net property income: S\$67.7 million (+17.9% YoY)
Total declared distribution: S\$39.7 million (+23.4% YoY)
DPU: 3.53 cents (+23.4% YoY)
Portfolio occupancy: 90.3% (up from 85.0%)
Aggregate leverage: 35.8% (improved from 37.4%)
Interest coverage ratio: 3.6x (up from 3.0x)

Asset Revaluation

AI-REIT’s portfolio was independently revalued at S\$948.9 million as of 31 December 2025, up from S\$913.1 million in June 2025. The uplift was driven by improved occupancy, higher rents, and internalisation cost savings. Cap rates ranged from 5.50% to 6.50% across asset types.

Dividend Analysis

Proposed DPU for 2H2025: 1.83 cents (up 20.4% from 1.52 cents in 2H2024)
Annual DPU: 3.53 cents (up 23.4% YoY)
Distribution payment scheduled for 27 March 2026.

Operational Highlights

Portfolio occupancy: Improved to 90.3% due to a new master lease tenant in the general industrial segment.
Rental reversion: Positive at +11.8%, albeit lower than prior year (+20.6%).
Tenant retention: 71.8%, below prior year’s 87.9%, reflecting more churn but also active lease management.
Lease expiry profile: WALE of 2.5 years, with leases well spread beyond FY2030.
Tenant mix: Well diversified, with top sectors including Technology, Logistics, Healthcare, and Electronics.

Capital Management

Total borrowings: S\$350 million (down from S\$353 million YoY)
Aggregate leverage: 35.8%
Average debt maturity: 2.0 years, improving to 2.4 years after refinancing
All-in financing cost: 4.36% (down slightly from 4.42%)
100% assets unencumbered

Management and Governance

AI-REIT is managed by an experienced team, led by CEO Karen Lee, with over 20 years of REIT leadership. The internalisation of the management structure is highlighted as a bold step for transparency and alignment with unitholders.

Market Outlook

Singapore’s economy expanded by 5.0% in 2025, with robust manufacturing and AI-related electronics demand.
GDP growth is forecasted at 2.0%-4.0% in 2026, moderating from 2025.
Industrial property occupancy remains stable (88.7%), with moderate rent growth expected (1%-3% in 2026).
Risks remain from global economic slowdown, trade policy uncertainty, and supply chain disruptions.

Chairman’s Statement

“Experienced Professionals with a Strong Track Record and Deep Real Estate Expertise.” (Chairman Bhavik Umesh Doshi)

The tone of the Chairman’s statement is confident and forward-looking, emphasizing professional experience and strategic transformation. The statement signals positive momentum and readiness to capture future growth opportunities.

Exceptional Items and Corporate Actions

Portfolio enhancement initiatives, including a major Asset Enhancement Initiative (AEI) at New Tech Park (Phase 3), are planned to unlock value and modernize industrial space.
No mention of asset sales, fundraising, divestments, legal disputes, or policy changes.
Internalisation costs were retained from distributable income (circa 10%), but there is no indication of errors or inconsistencies in the financials.

Conclusion and Investor Recommendations

Overall, AI-REIT’s FY2025 performance is strong. The REIT achieved significant growth in revenue, net property income, and distributions, supported by proactive lease management and improved portfolio fundamentals. Capital management remains prudent, with leverage reduced and refinancing secured. The outlook for industrial assets in Singapore is positive, though some macro risks persist.

Recommendations

For current holders: The REIT’s defensive performance, rising DPU, solid asset base, and prudent capital management suggest continued holding. The internalised management structure and value-creation pipeline (AEI) add to long-term attractiveness.
For potential investors: AI-REIT presents an attractive entry point, with a 7.35% DPU yield, strong portfolio fundamentals, and exposure to high-growth sectors like AI, technology, and logistics. However, investors should monitor macroeconomic risks and tenant retention trends.

Disclaimer: This article is based solely on disclosed financial results and operational performance. It does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions.