Alpha Integrated REIT 1Q 2026: Internalisation Dividend — Occupancy to 91.4%, ICR to 4.0x, Financing Cost to 3.85% as NTP Phase 3 Returns to the Pipeline

Alpha Integrated REIT (AI-REIT) 1Q 2026 (quarter ended 31 Mar 2026) delivered a clean step-up across every operating and capital metric that matters. Committed portfolio occupancy rose to 91.4% (1Q 2025: 86.4%, +5.0 percentage points y-o-y and +1.1pp from 90.3% at Dec-25). Rental reversion reaccelerated to +12.0% from +4.9% in 4Q 2025. Interest coverage strengthened to 4.0x (1Q 2025: 3.2x). All-in financing cost fell to 3.85% (1Q 2025: 4.57%). Aggregate leverage eased to 36.1%. The S$75.0M March 2026 refinancing — flagged as an 'emphasis of matter' in the 1Q 2025 review — completed cleanly, extending weighted debt maturity to 2.2 years. Six insights beyond the headline.

Committed portfolio occupancy 91.4% (1Q 2025: 86.4%; Dec-25: 90.3%) — tracking 2.3pp above the JTC All-Industrial 4Q 2025 benchmark of 89.1%. Rental reversion 12.0% across the portfolio, positive in every asset cluster: High-Tech +11.6%, General Industrial +12.1%, Warehouse & Logistics +12.9% (Chemical W&L had no renewals in 1Q). Total leases secured 32,993 sqm (Renewals 26,145 · New Leases 6,848). 59%+ of FY2026 lease expiries already renewed. Portfolio WALE 2.4 years. Tenant base 185 across 14 trade sectors, anchored by Technology/AI/Semicon/IT (26.3% of GRI) and Logistics & Supply Chain (25.8%). Aggregate leverage 36.1% (1Q 2025: 37.8%; Dec-25: 35.8%). ICR 4.0x (1Q 2025: 3.2x; Dec-25: 3.6x). All-in financing cost 3.85% trailing 3M (1Q 2025: 4.57%; Dec-25: 4.13%). Fixed-rate debt share 55.4%. Debt headroom S$136.5M. 100% unencumbered. Stress tests: ICR holds at 3.6x on -10% EBITDA and 3.7x on +100bps rates. At S$0.470 close 31 Mar 2026: trailing FY25 DPU of 3.53¢ implies 7.51% yield; market cap ~S$0.53B; AUM S$1.06B; NAV/unit S$0.53 (P/NAV ~0.89x).

The comparison between 1Q 2025 (last report under the external-manager structure, with 'emphasis of matter' language in the auditor's review and S$75M of loans maturing in 12 months) and 1Q 2026 is the cleanest read of what internalisation delivered. ICR 3.2x → 4.0x. All-in cost 4.57% → 3.85%. Leverage 37.8% → 36.1%. Occupancy 86.4% → 91.4%. The S$75M loan has been refinanced, lifting weighted debt maturity to 2.2 years. Same assets, same tenant base, same four clusters — different operating outcome. The structural thesis behind Singapore's first internalised REIT — that aligning the manager with unitholders removes fee-drag and sharpens capital decisions — now has a year of operational evidence behind it.

91.4% committed portfolio occupancy sits 2.3pp above JTC's 89.1% All-Industrial benchmark and beats every JTC sub-segment except Multi-User Factory (91.0%) — and AI-REIT is ahead of that too. More importantly, the occupancy lift is broad-based: General Industrial climbed to 98.9% (from 68.0% a year ago after 30/32 Tuas Avenue 8's master lease was re-signed in FY2025), Chemical Warehouse & Logistics at 95.5%, High-Tech at 89.4% (+5.8pp y-o-y). Warehouse & Logistics at 89.2% is the one cluster below the y-o-y benchmark (was 95.2%) and is the cluster to watch as 2026 unfolds.

The New Tech Park Phase 3 AEI — 200,000 sqft / 19,508 sqm of new hi-tech industrial space on untapped plot ratio at 151 Lorong Chuan — is now disclosed as 'Upcoming AEI (Under evaluation)'. In the 1Q 2025 deck, the same project was 'temporarily put on hold' citing business park market weakness (Savills data then showing 22.1% vacancy), Trump 2.0 tariff uncertainty, and financing constraints tied to the then-ongoing internalisation process. A year later, with internalisation complete, balance sheet healed, and the FY2025 independent revaluation uplift supported by improved occupancy, higher rents and cost savings, the project is back on the table. The framing has shifted from defensive to growth pipeline, explicitly positioned to support tenants in AI, information technology, and semiconductor sectors — the same high-growth end-markets driving 26.3% of current portfolio GRI.

1Q 2026 reversion of +12.0% is notably stronger than 4Q 2025's +4.9% — but that quarterly step-up is more about renewal pool composition than a change in rent trajectory. 4Q 2025 had only 2,665 sqm of renewals vs 17,736 sqm of new leases (new-lease rents are not in the reversion figure). 1Q 2026 renewals were 26,145 sqm — nearly ten times larger — and delivered double-digit lifts across every cluster with renewals. The cleanest trend read is the full-year sequence: FY2024 20.6% → FY2025 11.8% → 1Q 2026 12.0%. Reversion has stabilised in the low double-digits after the exceptional FY2024 print, consistent with Knight Frank's 2026 forecast of 1–3% market rent growth for private factory space. AI-REIT is converting tenant-specific pricing power above market growth rates.

All-in cost of 3.85% (trailing 3M) is 72bps lower y-o-y and 28bps lower than Dec-25's 4.13%. Two drivers: the SGD rate environment easing since MAS's policy stance through 2025, and the recent S$75M refinancing at better terms than the maturing facility. The variable to track is the fixed-rate debt mix — now 55.4%, down materially from 72.6% a year ago. The REIT is running less hedged than in the Sabana era, which is the right posture while rates are declining but adds sensitivity if MAS's April 2026 tightening (in response to Middle East energy prices) signals a turn. Stress test: +100bps on rates takes ICR from 4.0x to 3.7x — comfortable.

Technology (AI/semicon/IT) at 26.3% of GRI is now the largest single sector exposure, up from 23-ish% in prior periods. Combined with Logistics & Supply Chain at 25.8%, these two future-ready end-markets now drive 52% of the portfolio's rental income. Electronics (8.6%), Healthcare (7.8%), and F&B/Retail (7.5%) provide meaningful defensive diversification. Only 1.6% of GRI is in Education and 0.2% in Convention — traditional higher-volatility sectors that AI-REIT has appropriately underweighted. This is a portfolio positioned for the next leg of Singapore's industrial demand, not just the current one.

At S$0.470 close 31 Mar 2026, AI-REIT trades at P/NAV ~0.89x on the S$0.53 FY2025 NAV — a meaningful discount to the broader industrial S-REIT universe and to its own NAV. The 7.51% trailing yield reflects that discount. Consensus 12-month targets still cluster below the current price, reflecting analyst caution that has not yet caught up with the 1Q 2026 operational print. BT's 17 Apr 2026 REIT Watch coverage noted AI-REIT as one of the first S-REITs to report, alongside KDC REIT and Kore, with all three highlighting improvements in operating or financial metrics. DBS Research's end-March view favoured S-REITs with 'earnings visibility, strong tenant quality and embedded rental growth' — a fair description of the 1Q 2026 AI-REIT profile.

The 1Q 2026 print is the first clean operational quarter for AI-REIT as a fully internalised entity with the March 2026 refinancing closed, and every metric moves in the right direction simultaneously. Three forward catalysts merit attention: (1) the eventual NTP Phase 3 provisional permission re-submission and construction start — a 200,000 sqft hi-tech additive on a high-profile Lorong Chuan asset, positioned for AI/semiconductor demand; (2) the FY2027 refinancing currently in discussion with lenders, where execution quality will validate the current cost-of-debt trajectory; (3) Warehouse & Logistics cluster occupancy recovery (currently 89.2%, the one sub-portfolio below its y-o-y level). With leverage at 36.1%, ICR at 4.0x, and S$136.5M of debt headroom, AI-REIT has the balance sheet to execute on Phase 3 when the decision is taken.