AME Real Estate Investment Trust (AME REIT) has reported a 6.7% increase in net property income (NPI) for the first quarter ended June 30, 2024, compared to the previous corresponding quarter. This growth was driven by a significant 8.2% rise in rental income, attributed to the acquisition of a new industrial property and positive rental reversions across AME REIT’s portfolio.
The total distributable income for the quarter amounted to RM9.7 million, with AME REIT planning to distribute 99.9% of this income to unitholders. This translates to a distribution per unit (DPU) of 1.84 sen, which will be payable on August 30, 2024. This move reflects AME REIT’s commitment to rewarding its investors and maximizing value for them.
CEO and executive director of I REIT Managers Sdn Bhd, Chan Wai Leo, expressed satisfaction with the performance in the first quarter, highlighting the high occupancy rates across the portfolio and positive rental reversions achieved. He emphasized the resilience of AME REIT in the Malaysian industrial property market and expressed confidence in the sector’s growth potential, driven by increasing foreign direct investment and a stabilizing ringgit.
Looking ahead, Chan Wai Leo stated that AME REIT remains focused on maximizing long-term value for unitholders through strategic acquisitions and effective asset management. The company’s current portfolio comprises 34 industrial properties with a total lettable area of 1.9 million sq ft, as well as 3 industrial-related properties of workers‘ dormitories. As of June 30, 2024, AME REIT has RM686 million worth of properties under management.
AME REIT’s properties are strategically located across three industrial parks of AME Group in Iskandar Malaysia, namely i-Park @ Indahpura in Kulai, i-Park @ Senai Airport City in Senai, and i-Park @ SILC in Iskandar Puteri. These locations offer a conducive environment for industrial activities and contribute to the overall attractiveness of AME REIT’s portfolio.
In conclusion, AME REIT’s strong performance in the first quarter of 2024 reflects its operational excellence and strategic focus on value creation for investors. With a solid portfolio of industrial properties and a commitment to growth, AME REIT is well-positioned to capitalize on the opportunities in the Malaysian industrial property market and deliver sustainable returns to its unitholders.