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  • Writer's pictureDaniel Lee

Should You Invest In AIMS APAC REIT [Fundamental Analysis]

In this article, we'll be conducting a fundamental analysis of AIMS APAC REIT and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having a high degree of capital preservation ability.


Information Is Accurate Up To Nov 2023


Business Description

AIMS APAC REIT is an industrial REIT that was listed in 2007 and owns 29 office properties (26 are in Singapore and 3 are in Australia).

What I Like About AIMS APAC REIT:

  • Resilient occupancy rate & decent WALE

  • Tenants are well diversified and are in defensive and resilient industries


What I Do Not Like About AIMS APAC REIT:

  • Decreasing DPU and the increasing use of financial engineering to mask the impact of a diluting and stagnating distributable income from operation.

  • 16% of their properties have a remaining lease of less than 20 years which will require investors to ask for higher dividend yield to counter the impact of lease decay.

  • Management does not have a track record in capital preservation which eventually erodes the total return of the counter

Updates From Recent Performance (1H 2024)

General Comments:

  • Cost of borrowing would probably not feel the full brunt of a higher interest rate environment as the majority of their debt is due for renewal in 2027.

  • 70% Of AUD Income exposure is hedged

  • Gearing ratio had decreased to 32.1% as a result of equity fundraising that was completed in July 2023


Positive Headwinds:

  • -


Negative Headwinds:

  • -


Download Full Report On Telegram

and continue reading my independent analyst report which will provide you with a detailed look at the fundamentals of the stock and a range of price targets to help you out with your investment decision for AIMS APAC REIT:

*Join the channel click on the channel name under files download the report you want!


"Retire With REITS" eBook/Webinar

If you are new to REIT investing or would like to sharpen your investment knowledge, you can gain access to my webinar and download my e-book: "Retire With REITs" which will give you insights as to how I analyse and select the right REITs to invest in for passive income generation!


- Work In Progress -

Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).


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Disclaimer:

This article is meant to be the opinion of the author

This article is for information purposes only

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore


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