AIMS APAC REIT (AA REIT) owns 28 industrial properties in Singapore and Australia,
Initiate coverage of AIMS APAC REIT (AA REIT) with a BUY rating
AA REIT owns 28 industrial properties in Singapore and Australia, of total lettable area of 0.78m sqm valued at S$2.2 billion.
Singapore contributes 75% of gross rental income, with logistics and warehouses making up 48%.
Sole sponsor, AIMS Financial Group (AFG), an Australian diversified financial services and investment group, owns 100% of the REIT manager, AIMS APAC REIT Management Ltd and 9.1% stake in AA REIT. ESR Group has a shareholding of 12.8%.
Source: Company data
Near full occupancy and strong rental reversions
The assets enjoy near full occupancy of 97.3% in 1Q25. Rental reversion was +12.8% (FY24: +24.3%), fuelled by +26.8% for logistics and warehouse assets.
We expect growth to moderate to +9% in FY25E, as leases signed at low rates during Covid fade off, and impending 4.4m sqm upcoming supply of industrial space in Singapore.
Growth would be driven by 1) refurbishment at 7 Clementi Loop...