AIMS APAC REIT Declares Distribution of 2.400 Cents Per Unit; Key Tax Guidelines for Shareholders
AIMS APAC REIT (AA REIT) has announced a distribution of 2.400 cents per unit for the period from 1 October 2024 to 31 December 2024. This distribution comprises a taxable income component of 2.090 cents per unit, a tax-exempt income component of 0.070 cents per unit, and a capital distribution component of 0.240 cents per unit. Shareholders should note the following critical dates and key tax considerations:
Important Dates
- Ex-distribution Trading Starts: 9.00 a.m., 7 February 2025
- Record Date: 5.00 p.m., 10 February 2025
- Form Submission Deadline: 5.00 p.m., 27 February 2025
- Distribution Payment Date: 26 March 2025
Tax Implications for Unitholders
The distribution will have different tax treatments depending on the components:
- Tax-Exempt Income Component: Exempt from Singapore income tax for all unitholders, irrespective of nationality or tax residency.
- Capital Distribution Component: Considered a return of capital and not subject to income tax. However, unitholders taxable on profits from the sale of AA REIT units must adjust their cost base accordingly.
- Taxable Income Component: Tax will not be deducted for certain categories, including individual unitholders, CPF and SRS members, Singapore-incorporated companies, and other qualifying entities. For others, the prevailing corporate tax rate or a 10% concessionary rate for qualifying foreign non-individual unitholders and funds will apply.
Critical Actions for Unitholders
Unitholders falling within specific categories (e.g., Singapore-incorporated companies, charities, foreign funds) must submit the appropriate tax declaration forms (Form A or Form B) by 27 February 2025. Failure to do so will result in tax being deducted at the prevailing corporate tax rate.
CPF and SRS members, as well as individual unitholders holding units directly, are exempt from submitting forms and will receive the gross distribution directly into their respective accounts. However, for those to whom tax exemption does not apply, the distribution must be declared in their Year of Assessment 2026 tax returns.
Potential Impact on Share Price
The announcement of a consistent distribution of 2.400 cents per unit reaffirms AA REIT’s commitment to delivering value to its unitholders, which could bolster investor confidence and potentially impact share prices positively. Moreover, the clarity on tax guidelines may attract more institutional and foreign investors seeking favorable tax treatments for distributions.
About AIMS APAC REIT
AA REIT is a Singapore-listed real estate investment trust with a diversified portfolio of 28 properties across Singapore and Australia. The trust focuses on income-producing industrial, logistics, and business park assets, contributing to its robust performance. Notably, AA REIT is part of the FTSE EPRA Nareit Global Developed Index and the MSCI Singapore Small Cap Index.
Key Risks
Investors should be aware of potential risks, including fluctuating property rental income, changes in operating expenses, and general economic conditions. AIMS APAC REIT Management Limited emphasizes that past performance is not indicative of future results, and the investment is subject to risks, including potential loss of capital.
Contact Details
For any queries regarding the distribution or tax declaration forms, shareholders can contact Ms. Lim Joo Lee at 6309-1050 or via email at investorrelations@aimsapac.com.
Disclaimer
The information provided herein is for informational purposes only and does not constitute financial advice or an offer to acquire, purchase, or subscribe for shares. Investors are advised to consult with their financial advisors before making any investment decisions.
