AIMS APAC REIT (formerly: AIMS AMP Capital Industrial REIT)

[heyjojos]

thanks all!  
Some good information. Will read through it.

[weijian]

AIMS APAC REIT manager will record a performance fee (% of property value) if the DPU of current year exceed that of prior year by 5%. As the Mgr recognized some performance fees coming out of covid19, SIAS helped OPMIs to make some noise.

A look at its prior years' DPU (in cents) and performance fees:
FY24: 9.36
FY23: 9.94 (performance fees 4,476k)
FY22: 9.46 (performance fees 4,619k)
FY21: 8.95
FY20: 9.50
FY19: 10.25
FY18: 10.30
FY17: 11.05

So, a total of ~9mil of performance fees (or 1.1cents per share) was paid to Mgr for FY22 and FY23 "outperformance" over prior year. But FY23 DPU of 9.94cents was still below its precovid-19 (FY19) DPU of 10.25cents. So Mgr calculates performance fees without accounting for prior deficits. That isn't really exactly fair and good alignment with "interest of unitholders".

RESPONSES TO QUERIES FROM SECURITIES INVESTORS ASSOCIATION (SINGAPORE) (“SIAS”)

It should be noted that a performance fee is only payable when the Manager has achieved certain levels of growth in the DPU in the current financial year relative to the previous financial year. As the year-on-year growth of the DPU is in line with the interests of the Unitholders, the performance fee is intended to spur the Manager to seek growth opportunities or embark on cost savings initiatives to improve the performance of AA REIT.

Accordingly, AA REIT was paid performance fee in FY2023 and FY2024 as its DPU in the respective financial years grew by more than 5% from the previous financial years. The growth in DPU was largely attributable to strong operating performance of AA REIT’s portfolio and contributions from two yield accretive acquisitions.

https://links.sgx.com/FileOpen/Responses...eID=812576