Excerpts from Maybank report

AIMS APAC REIT (SGX: O5RU)

High occupancy, recovering rents AIMS APAC Reit FY22 DPU rose 5.7% YoY, underpinned by resilient portfolio occupancy, recovering rents and the Woolworths acquisition in Nov’21. The results were in line with consensus, and ahead of our estimate. We see strong fundamentals ahead, given the higher Australian business park contributions and improving rental growth outlook for its Singapore industrial assets. With rental recovery set to strengthen against demand growth and positive macros, we raised DPUs by 5-6%, and our DDM-based TP by 3% to SGD1.70. Maintain BUY.

Improving demand, reversion strong at +14.7%

Portfolio occupancy was maintained at 97.6% in 4Q22, driven by strong leasing momentum at 5.9m sf (vs 6.1m sf in 3Q22). AAREIT achieved a strong +14.7% rental reversion (vs +0.2% in 3Q22). llumina renewed its lease (at 29 Woodlands Industrial Park E1) for 10 years at a...