Singapore-heavy industrial REIT Cambridge Industrial Trust (CIT) (SGX:J91U) announced an 8.53% drop in net property income (NPI) for its 1H 2014 compared to the corresponding period last year.
NPI for the first half of 2014 was recorded at SGD38.6 million compared to the SGD42.2 million in 2013. Taken on a quarterly basis, NPI for the period also recorded a reduction of 5.29% going from SGD20.8 million in 2Q 2013 to 19.7 million in 2Q 2014.
Subsequently distribution per unit (DPU) for the quarter increased marginally by 0.9% year-on-year to 1.251 cents from 1.240 cents.
Portfolio occupancy for the quarter was reported at 97%. CIT maintains a portfolio of 48 industrial properties in Singapore.
However the REIT has indicated that its Singapore-only strategy will not continue and it is looking to acquire industrial properties overseas for growth opportunities.
“As we look forward, we recognise the limitations of the Singapore market and will increase our focus on other markets within the (REIT’s) Pan-Asian mandate. Our initial focus will be on Australia, Japan and Malaysia which mirror Singapore’s sovereign risk and transparency characteristics,” said Philip Levinson, CEO for the REIT’s manager.
Units of CIT are currently trading on the Singapore Exchange at SGD0.75.