I have said before that AA REIT is not unique in the industrial REIT space. All industrial landlords in Singapore are facing difficulties presented by over supply and weaker demand. From the latest results presented by AA REIT, it is obvious that the difficult environment is not letting up anytime soon. 1. New and renewed leases are at a weighted average rental decreaseof 4.3%. 2. Portfolio occupancy has declinedfrom 94.6% to 91.0%. Things are admittedly difficult but they are far from grim. 103 Defu Lane 10. A competent management has kept gearing manageable at 36.3% and also managed to reduce overall blended funding cost to 3.6%. Interest cover ratio is healthy at 4.9x and NAV per unit stands at $1.39. We tend to be a bit less cautious when the stock market is doing better but it pays to go back to the fundamentals. Just two days ago: ......