AIMS APAC REIT (AA REIT) posted a 5.7 per cent year-on-year (YoY) increase in net property income to S$141.3 million for the 12 months ended 31 March 2026, lifted by higher rents and lower utility costs. Gross revenue rose 2.2 per cent to S$190.7 million as the trust secured firm tenant demand across its Singapore and Australian portfolios.
Distributions to unitholders grew 3.1 per cent to S$80.6 million, underpinning a 2.6 per cent rise in distribution per unit (DPU) to 9.850 Singapore cents. The final distribution of 2.600 cents per unit—comprising 2.384 cents of taxable income, 0.107 cents of tax-exempt income and 0.109 cents of capital—will be paid on 29 June 2026 to unitholders on record as of 18 May 2026. Net asset value climbed to S$1.28 per unit from S$1.23 a year earlier.
Portfolio performance benefited from 98 lease transactions covering 27.4 per cent of net lettable area, which delivered a 7.7 per cent positive rental reversion. Occupancy was steady at 93.6 per cent, or 96.8 per cent on a committed basis, with a weighted average lease expiry of four years. Singapore contributed 76.5 per cent of gross rental income, while Australian assets— including the Optus Centre, Macquarie Park and Bella Vista business parks—accounted for the balance.
On the investment front, AA REIT acquired the city-fringe industrial property at 2 Aljunied Avenue 1 and completed asset enhancement initiatives at 15 Tai Seng Drive and 7 Clementi Loop, each backed by long-term leases. Capital recycling efforts saw the divestment of 3 Toh Tuck Link and 8 Senoko South Road at premiums of 32.5 per cent and 11.1 per cent to valuation respectively, while proactive funding measures included two S$150 million and S$100 million perpetual securities issuances at 4.10 per cent and 4.25 per cent to pre-fund the September 2026 redemption. Aggregate leverage stood at 26.8 per cent with no refinancing due until FY2027; 80 per cent of borrowings are hedged, and the average cost of debt eased to 4.1 per cent.
Management identified emerging headwinds from persistent inflation, elevated interest rates and geopolitical tensions, although committed occupancy and tenant diversification—over 80 per cent of rental income stems from essential and defensive sectors—are expected to cushion volatility.
Chief executive officer Russell Ng said the full-year performance reflected disciplined execution of AA REIT’s “four-pillar” strategy, noting that lower electricity costs, successful asset enhancements and accretive transactions supported earnings and DPU expansion. He signalled that the early refinancing of perpetual securities should lower funding costs and preserve financial flexibility ahead of maturities in FY2027.
Ng added that the trust is positioning for its “next phase of growth” by pursuing three pathways into data-centre real estate: redevelopment of existing Australian assets, acquisition of land-rich infill properties near power infrastructure, and partnerships with specialist operators. Chairman George Wang underscored the NSW Government’s recent endorsement of AA REIT’s Macquarie Park and Bella Vista sites for future data-centre development, saying the decision reinforces the strategic value of the portfolio and aligns with rising demand for cloud and AI-driven capacity.
Looking ahead, the manager reiterated its focus on selective acquisitions, continued asset enhancements and further progress on its sustainability roadmap. AA REIT has already cut portfolio carbon emissions 31 per cent against its FY2020 baseline and expanded on-site solar capacity to 15.46 MWp. Management will maintain high hedge ratios for interest rates and Australian-dollar distributions while exploring growth opportunities in logistics, data centres and renewable energy infrastructure amid an uncertain macroeconomic backdrop.