With the earnings season in full swing in Singapore, we want to turn our attention to REITs, and in particular we want to zoom in on AIMS APAC REIT, which has just announced its FY2023 results today. 

Listed on the Mainboard of the Singapore Exchange since 2007, Aims APAC Reit invests in a diversified portfolio of logistics, business parks and industrial real estate across APAC, including subsegments like warehouse and hi-tech space in Singapore and Australia. 

The REIT reported a 5.1% year-on-year increase in distribution per unit in FY 2023, representing a distribution yield of 7.5%.

Its net property income also surged 18.7% to S$122.5 million for the year, while portfolio occupancy stood at a record high of 98%, with a tenant retention rate of 78.4%. 

AIMS APAC REIT says the numbers were driven by higher occupancy in the Logistics and Warehouse segment, which has seen double digit growth across the four quarters thanks to demand coming in from third party logistics players. 

But for how long will the logistics and warehouse segments remain defensive, and how will leasing demand look like in FY2024?

On Under the Radar, Drive Time’s finance presenter Chua Tian Tian sat down with Russell Ng, Chief Executive Officer, AIMS APAC REIT for more.