The perps are issued under a S$750 million multicurrency debt issuance programme started in November 2018

 

[SINGAPORE] The trustee of Aims Apac Reit (AA Reit), HSBC Institutional Trust Services (Singapore), on Wednesday (Jan 21) issued S$150 million of subordinated perpetual securities carrying a distribution rate of 4.1 per cent.

 

The perpetual securities were issued under the real estate investment trust&rsquo s (Reit&rsquo s) S$750 million multicurrency debt issuance programme established in November 2018.

 

The distribution rate of 4.1 per cent is fixed until the first reset date on Jan 21, 2031, based on a previous offer announcement released on Jan 12. Thereafter, the rate will be reset to the five-year Singapore Overnight Rate Average Overnight Indexed Swap plus an initial spread of 2.22 per cent.

 

Net proceeds from the issuance will be used to refinance existing borrowings and finance capital expenditure or acquisitions, and specifically refinance the Reit&rsquo s existing S$250 million fixed-rate subordinated perpetual securities.

 

DBS, OCBC and UOB acted as the joint lead managers and bookrunners for the issuance.

 

The Reit&rsquo s manager said that approval in-principle has been received from the Singapore Exchange (SGX) for the dealing, listing and quotation of the securities. 

 

The perps are expected to be listed on the SGX at 9 am on Thursday.

Landlord Aims Apac Reit has failed to ensure FNA did not sublet: JTC

 

[SINGAPORE] FNA Group, the owner and operator of chocolate retailer The Cocoa Trees, has paid about S$450,000 to its landlord Aims Apac Reit, after it was found to have sublet industrial units at its headquarters in Hougang without authorisation.

 

The real estate investment trust (Reit) was found to have breached JTC lease conditions for the building it holds in Defu Lane. 

 

It was asked to pay a regularisation fee of about S$450,000, which FNA Group has paid to Aims Apac Reit.

 

At least 10 tenants took up space at the FNA Group Building at 103 Defu Lane 10 since 2016, a source familiar with the matter told The Business Times. Over this period, FNA Group collected at least S$3.5 million in rent, the source said. 

 

BT understands that following an anonymous tip-off, JTC inspected the building in February 2025 and discovered that units had been sublet without authorisation. 

 

The agency adjusted the regularisation fee downwards to account for how some of the sub-lessees at 103 Defu Lane had vacated the premises earlier. The fee was paid sometime in October. 

 

In response to queries from BT, JTC said it leased the building to Aims Apac Reit and permission was granted to the Reit to sublet the site to FNA. 

 

&ldquo FNA proceeded to effect a secondary sublet to other parties. Aims Apac Reit breached the lease conditions by failing to ensure that FNA did not further sublet.&rdquo

 

Aims Apac Reit was asked to pay a regularisation fee and evict the unauthorised secondary subtenant within a given time frame, JTC stated. 

 

Aims Apac Reit posts 0.4% higher Q1 DPU of S$0.0228 amid stable operational performance

In response to queries from BT, an FNA Group spokesperson said it has complied fully with JTC on the matter. 

 

The spokesperson noted: &ldquo The sub-tenancy arrangement has since been terminated, the regularisation fee as determined by JTC has also been paid in full.

 

&ldquo Our lease with Aims Apac Reit remains active, and all matters arising from the review have been fully resolved with no outstanding matters.&rdquo

 

Aims Apac Reit&rsquo s manager said it takes compliance with all lease conditions seriously and conducts regular reviews to ensure that tenants meet their obligations.

 

&ldquo The arrangement in question was not disclosed and did not involve visible changes, which made detection difficult. Once the arrangement was highlighted, we immediately sought to rectify the issue in consultation with JTC.&rdquo

 

BT understands that FNA was &ldquo not aware&rdquo tenants had to seek approval for subletting. Some of the units were sublet during the Covid-19 pandemic when FNA faced business challenges. 

 

The FNA Group Building is a six-storey industrial building zoned Business 1, with a gross plot ratio of 2.5. It has about 18 years left on its 60-year lease. 

 

For the first half of 2025, Aims Apac Reit posted a 1.1 per cent increase in distribution per unit to S$0.0472, from S$0.0467 in the year-ago period, the Reit manager announced on Wednesday (Nov 5). 

 

According to the Reit&rsquo s latest financial results, 103 Defu Lane was 100 per cent occupied. FNA did not say how much space it occupied in the building and how much was sublet. 

 

A source, who declined to be named, said: &ldquo The outcome &ndash a &lsquo regularisation fee&rsquo of about S$450,000 &ndash appeared unusually lenient, considering the scale and duration of the violation.&rdquo  

 

JTC lessees must use 100 per cent of their gross floor area (GFA) for their own business operations. 

 

&ldquo If there is temporary excess space, the lessee must seek JTC&rsquo s permission before subletting. Subletting is generally only allowed for up to 30 per cent of the total GFA,&rdquo said JTC. 

 

However, if a lessee is subletting to a related business, they are not restricted to the 30 per cent GFA cap. A related business is a business for which either the lessee owns more than 50 per cent of the shareholding or the related business owns more than 50 per cent of the lessee, according to the agency&rsquo s website. 

 

A lessee cannot sublet without JTC&rsquo s permission.

 

&ldquo This would be a breach of the tenancy agreement and can result in termination of tenancy. A subtenant cannot further sublet the premises secondary subletting would also be a breach of (the) tenancy agreement,&rdquo JTC said. 

 

Based on JTC&rsquo s website, the fee for subletting to unrelated entities is calculated by dividing the sublet area by the total GFA, and multiplying it by the land area and JTC&rsquo s land rental rate per annum. This sum is then divided by 12 to obtain the sublet fee per month.

 

  It is then multiplied by 30 per cent for timely applications, or 100 per cent for late applications or false declarations. 

 

For subletting to related entities, no fee is payable for timely applications. For late applications, the lessee will pay a flat fee of S$1,100. 

 

When asked how JTC determined the regularisation fee, a JTC spokesperson said the fee was not imposed on FNA or based on FNA&rsquo s rental income, as FNA is not JTC&rsquo s lessee.

 

The agency said: &ldquo JTC takes a serious view of breaches of our tenancy agreements. We will continue to review the sublet policy and conduct enforcement actions.&rdquo  

Revenue for the period inches up 0.2% to S$93.7 million

[SINGAPORE] Aims Apac Reit on Wednesday (Nov 5) posted a distribution per unit (DPU) of S$0.0472 for the first half of FY2026, up 1.1 per cent from S$0.0467 in the previous corresponding period. 

 

Revenue for H1 inched up 0.2 per cent to S$93.7 million, from S$93.5 million previously.

 

Net property income stood at S$68.4 million for the first half, an increase of 1.1 per cent year on year from S$67.6 million. 

 

This was underpinned by good operational performance and portfolio rental growth. 

 

Distribution to unitholders rose 1.6 per cent year on year to S$38.6 million, from about S$38 million previously. 

 

The manager in the period executed 11 new and 36 renewal leases, totalling 97,175 square metres. This represented 12.6 per cent of the portfolio&rsquo s net lettable area, with positive rental reversion of 7.7 per cent achieved. 

 

Looking ahead, the manager of Aims Apac Reit remains cautious around any emerging risks due to the macroeconomic environment, on the back of the lowering of overnight funds rate between 3.75 and 4 per cent by the Fed in September. 

 

&ldquo We will monitor incoming data and the evolving outlook,&rdquo said the manager. 

 

&ldquo Still, with rising occupier demand for modern logistics and high-spec industrial space, the Reit is well positioned to capitalise on evolving supply chain needs and accelerate sustainable growth through selective investments and value-accretive asset enhancements.&rdquo

The move will increase its industrial exposure to 22.7% from 20.6%

 

[SINGAPORE] Aims Apac Reit : O5RU 0% is proposing to acquire an industrial property, comprising two buildings in the Aljunied area, for around S$56.7 million, the manager announced on Friday (Aug 29). 

 

This sum is the total of the purchase price of S$45.8 million and the JTC upfront land premium contribution of up to S$10.9 million. 

 

The manager said the proposed acquisition is a &ldquo strategic addition&rdquo to the portfolio of the real estate investment trust (Reit) it offers an &ldquo attractive&rdquo 8.1 per cent property yield and immediate distribution per unit accretion. 

 

It will raise the Reit&rsquo s industrial exposure to 22.7 per cent post-acquisition, from 20.6 per cent. The transaction will also raise its exposure to resilient and essential industries to 82.8 per cent from 82.3 per cent, and lift its portfolio occupancy to 93.9 per cent from 93.7 per cent. 

 

Russell Ng, chief executive of the manager, said: &ldquo The acquisition will enhance our portfolio resilience by diversifying the tenant base, improving portfolio occupancy and expanding our exposure to essential industries.&rdquo

 

He added that the property has &ldquo in-built annual rental escalations under the anchor lease&rdquo .

 

The property is at 2 Aljunied Avenue 1. The two buildings have a total land area of 7,481.7 square metres (sq m), a total net lettable area of around 16,082.4 sq m and a gross floor area of 18,662.13 sq m. 

 

They are 97 per cent occupied and supported by a three-year rental guarantee over the vacant 3 per cent of gross floor area. 

 

Situated near the Paya Lebar commercial and retail hub, the buildings are a five-minute drive from the Pan Island Expressway and a 10-minute walk from Paya Lebar MRT interchange. 

 

Ng noted the property&rsquo s potential for future asset-enhancement initiatives and repositioning beyond near-term income, given its proximity to the interchange and location in the city-fringe market. &ldquo The property is well-suited for high-spec users in the healthcare, life sciences and advanced manufacturing industries that require high power capacity.

 

&ldquo With comparable assets in the area commanding premium rents due to its ease of accessibility to several expressways, and excellent connectivity to transport and extensive amenities in the precinct, we see clear long-term value-add opportunities,&rdquo Ng said. 

 

George Wang, chairman of the manager, highlighted that the acquisition aligns with the Reit&rsquo s investment strategy of &ldquo acquiring high-quality, income-generating assets&rdquo that enhance its tenant and asset diversification and portfolio resilience. 

 

He added that the Reit&rsquo s healthy balance sheet positions it to make new acquisitions. 

 

Distributions to unitholders also grew 1.1% for the period to S$18.6 million

 

[SINGAPORE] Aims Apac Reit reported on Thursday (Jul 31) a 0.4 per cent increase in distribution per unit (DPU) of S$0.0228 for Q1 FY2026, from S$0.0227 in the same year-ago period. 

 

The distribution will be paid out on Sep 24, with its record date on Aug 11.

 

Distributions to unitholders also grew 1.1 per cent for the period to S$18.6 million, from S$18.4 million in the corresponding period a year prior. 

 

Revenue stood at S$47.4 million, inching up 0.2 per cent from S$47.3 million in Q1 FY2025. 

 

Net property income fell slightly by 1 per cent year on year to S$34.1 million, however, from S$34.4 million the same period a year before. This was mainly due to temporary vacancy arising from the ongoing asset enhancement initiatives (AEIs) at 7 Clementi Loop compared to the same period last year. 

 

The manager of the Reit in Q1 FY2026 executed seven new and 25 renewal leases, amounting to 67,941 square metres (sq m), which represents 8.8 per cent of the portfolio&rsquo s net lettable area. About 119,518 sq m is due for expiry in Q1, of which 61 per cent is in the logistics and warehouse segment. 

 

Positive rental reversions of 5.4 per cent were achieved, primarily driven by the logistics and warehouse segment, which saw a rental reversion of 7.3 per cent.

 

Portfolio occupancy stood at 93.7 per cent as at Jun 30, down from 97.3 per cent in the same year-ago period. Based on committed leases and excluding the ongoing impact from the AEIs and transitory movements by tenants, the occupancy rate would be 96.5 per cent.

 

Aggregate leverage was at 28.9 per cent, while its weighted average lease expiry was at 4.4 years. Interest coverage ratio stood at 2.4 times.

 

Russell Ng, chief executive of the manager, said: &ldquo We are pleased to deliver a stable operational and financial performance for the quarter while progressing on our portfolio rejuvenation strategy. We have completed one of two ongoing AEIs which will uplift asset quality, rental income and value. Furthermore, the completed divestment of 3 Toh Tuck Link at a premium will enable the recycling of capital into new growth initiatives.&rdquo  

 

The manager had announced on Jun 17 the completion of the divestment of 3 Toh Tuck Link for S$24.4 million, which represented a 32.5 per cent premium over valuation. Net proceeds from the successful divestment will be utilised to repay debt in the interim and recycled into new growth opportunities.

 

The Reit&rsquo s portfolio, in addition, includes around 190 tenants across multiple trade sectors, with 82.3 per cent of gross rental income (GRI) from tenants in defensive industries. 

 

The manager noted that 76.9 per cent of the Reit&rsquo s GRI is from Singapore assets, with the remaining coming from long-term leases in Australia.

 

As such, George Wang, chairman of the manager, also added that Aims Apac Reit&rsquo s focus on the Singapore and Australia market has positioned them favourably compared to other markets, amid wider geopolitical headwinds arising from the US tariff trade policies and conflicts in the Middle East and Ukraine, along with rising US debt and inflationary pressures creating a highly uncertain and volatile global environment.