Alpha Integrated Real Estate Investment Trust (AI-REIT) reported a sharp improvement in full-year results for the 12 months ended 31 December 2025, with total return after tax and before distribution rising more than five-fold to S$63.98 million from S$11.37 million a year earlier. Management attributed the surge chiefly to higher net property income and a S$25.78 million fair-value gain on investment properties, reversing a loss in the prior year.
The trust’s earnings per unit climbed to 5.69 Singapore cents from 1.01 cents a year earlier. AI-REIT declared a final distribution of 1.83 cents per unit for the period 1 July-31 December 2025, payable on 27 March 2026 to unitholders on record as of 25 February 2026. Together with the interim payout of 1.70 cents already distributed, total distributions for FY2025 amount to 3.53 cents per unit, up 23.4% from 2.86 cents in FY2024.
Net property income increased 17.9% year-on-year to S$67.72 million, supported by positive rental reversions and improved portfolio occupancy. Segment-wise, high-tech industrial assets contributed S$42.45 million in net property income, up 22.3% YoY, while chemical warehouse & logistics assets generated S$4.94 million, more than double last year’s level. Warehouse & logistics properties recorded a 2.7% increase to S$15.60 million, whereas general industrial assets slipped 9.3% to S$4.73 million.
Finance costs eased 4.5% to S$17.06 million as lower benchmark interest rates and a reduced debt balance offset higher bond interest. Aggregate leverage stood at 35.8% (FY2024: 37.4%), while the interest-coverage ratio improved to 3.6 times from 3.0 times. The trust remains fully unencumbered, and refinancing of a S$75 million loan maturing in March 2026 has been secured.
During the year, AI-REIT completed the internalisation of its REIT management platform and continued to advance asset enhancement initiatives aimed at sustaining rental growth and occupancy. Capital expenditure on investment properties reached S$4.0 million, focused on upgrading high-tech assets and enhancing energy efficiency.
Looking ahead, the manager expects steady but modest industrial rental growth of up to 2% in 2026, supported by demand for modern logistics facilities and limited new supply in certain segments. The trust plans to drive organic growth through proactive leasing and targeted asset upgrades, while remaining cautious amid macroeconomic uncertainties and potential volatility in interest rates and capital markets. It also noted the ongoing mandatory conditional cash offer for all units by Mindarie Investment Pte. Ltd., with the offer set to close on 24 February 2026.