AIMS APAC REIT Announces Key Dividend Details and Taxation Guidelines
Singapore, January 28, 2025: AIMS APAC REIT Management Limited, the manager of AIMS APAC REIT (AA REIT), has announced critical updates on its Q4 2024 dividend distribution, including payment details and tax-related clarifications. This announcement provides valuable insights for its unitholders and may have implications for the REIT’s market performance.
Key Dividend Announcement for Q4 2024
AA REIT has declared a distribution of 2.400 cents per unit for the period from October 1, 2024, to December 31, 2024. The distribution consists of three components:
- Taxable income component: 2.090 cents per unit
- Tax-exempt income component: 0.070 cents per unit
- Capital distribution component: 0.240 cents per unit
Unitholders whose securities accounts with The Central Depository (Pte) Limited (CDP) are credited with AA REIT units by 5:00 p.m. on February 10, 2025 (the “Record Date”) will be entitled to this distribution. The payment will be made on March 26, 2025.
Taxation Guidelines for Unitholders
AA REIT has provided detailed tax guidelines for its unitholders:
- Tax-Exempt Income Component: This portion is exempt from Singapore income tax for all unitholders, regardless of nationality or tax residency.
- Capital Distribution Component: This represents a return of capital and is non-taxable. However, it will reduce the cost base of AA REIT units for unitholders who are subject to tax on profits from the sale of these units.
- Taxable Income Component: This portion is subject to tax unless exemptions apply. Key exemptions include:
- Individuals holding units solely or jointly
- Central Provident Fund (CPF) members using CPF funds under the CPF Investment Scheme
- Supplementary Retirement Scheme (SRS) account holders
- Corporate entities and non-corporate entities registered in Singapore
- Qualifying foreign non-individual unitholders and foreign funds, which benefit from a reduced tax rate of 10% (expiring after December 31, 2025, unless extended)
Unitholders not falling within the above categories will have tax deducted at the prevailing corporate tax rate.
Important Deadlines for Unitholders
Unitholders must complete and submit the relevant taxation declaration forms to AA REIT’s unit registrar, Boardroom Corporate & Advisory Services Pte. Ltd., by 5:00 p.m. on February 27, 2025. Failure to comply may result in tax being deducted at the maximum applicable rate.
Key dates for unitholders include:
- February 7, 2025: First day of “ex-distribution” trading
- February 10, 2025: Record Date (5:00 p.m.)
- February 12, 2025: Dispatch of declaration forms
- February 27, 2025: Deadline for submission of declaration forms
- March 26, 2025: Payment of distribution
Implications for Shareholders
This announcement outlines significant details that could impact the share price of AA REIT. The high yield of 2.400 cents per unit, along with clear tax guidelines, may attract new investors seeking stable returns. However, the upcoming expiration of the 10% reduced tax rate after 2025 may prompt tax-sensitive investors to reconsider their long-term positions.
Contact Information
Unitholders with questions are encouraged to contact AA REIT’s Investor Relations team:
About AIMS APAC REIT
AIMS APAC REIT is a listed real estate investment trust specializing in industrial, logistics, and business park properties across Singapore and Australia. Its diversified portfolio of 28 properties generates stable and income-producing returns for its investors.
Disclaimer
Disclaimer: This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell securities. The value of units and income derived from them may fluctuate, and past performance is not indicative of future results. Investors are advised to consult their financial advisors for tailored advice.
