Cambridge Industrial Trust's property in Changi South.Cambridge Industrial Trust's property in Changi South.

Singapore-listed industrial REIT, Cambridge Industrial Trust (SGX:J91U), announced on 14 January that it has achieved distribution per unit (DPU) of 1.139 cents for its 4Q 2015, a drop of 9% from the 1.252 cents paid in 4Q 2014.

The results brought full-year DPU for the period ended 31 December 2015 to 4.793 cents, a fall of 4.2% from the 5.004 cents paid for FY2014. However gross revenue for the period increased 13.0% year-on-year to SGD112.2 million while net property income (NPI) increased 10.7% to SGD86.2 million.

“Cambridge Industrial Trust’s portfolio sustained double digit NPI growth for three consecutive quarters this year, with positive rental reversions of 9.1% and above industry average occupancy”, said Philip Levinson, CEO of the REIT’s manager, in a statement on the results.

“At the same time, we recognize that our DPU for the full year is down year-on-year, mainly due to reduced capital distributions as compared to the year before”, he added.

As at 31 December 2015, Cambridge Industrial Trust’s has a weighted average lease expiry (WALE) of 3.8 years while portfolio occupancy is 94.3%. Gearing is at 36.9% and more than 97% of interest rate exposure has been fixed for the next 3 years with no refinancing requirements until FY2017, said the REIT.

“Looking ahead, pressures on rental terms are expected due to the softer economic environment”, said the REIT in its statement on the results. “The conversion of properties from single tenancy to multi-tenancy is also expected to continue to have a negative impact on portfolio occupancy and net property income during 2016”, it added.

“Cambridge Industrial Trust is well-positioned to perform favourably relative to the market. We will continue to seek appropriate opportunities in Singapore, Australia and Japan in order to achieve sustainable growth and increase unitholder returns”, added Levinson.

Units of Cambridge Industrial Trust finished the day 3.64% lower from its previous close on the Singapore Exchange to end at SGD0.53 - its lowest price in 52 weeks.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.