ARA LOGOS Logistics Trust's Changi Districentre 2. (Photo: REITsWeek)ARA LOGOS Logistics Trust's Changi Districentre 2. (Photo: REITsWeek)

Singapore-listed industrial REIT, Cache Logistics Trust, announced on 20 July that it has recorded a distribution per unit (DPU) of 1.989 Singapore cents for its 2Q 2016, a fall of 7.1% compared to the 2.14 cents achieved for 2Q 2015.

The REIT has attributed the fall mainly to an enlarged unit base and highlighted that the 2Q FY2015 DPU included a capital distribution of 0.185 cents per unit from the divestment of Kim Heng Warehouse.

Gross revenue for the period increased by 30.3% year-on-year to SGD28.1 million while net property income (NPI) and income available for distribution rose by 21.9% and 6.2% year-on-year to SGD22.6 million and SGD17.8 million respectively.

The REIT has attributed the rise in revenue and NPI mainly to the Australian acquisitions in the last financial year, and revenue from its DHL property in Singapore.

Cache Logistics Trust’ portfolio occupancy improved 1.6% points quarter-on-quarter to 95.8% as at 30 June 2016 with a weighted average lease to expiry (WALE) of 4.1 years.

The REIT’s leverage is currently at 39.8% with an average all-in cost of financing of 3.63%, and a weighted average debt maturity of 2.6 years.

On its outlook for the quarters ahead, the REIT warned that the operating environment in Singapore remains challenging although overall economic growth is continuing in Australia.

“Looking ahead, the manager will continue to maintain high portfolio occupancy, enhance building performance and explore asset rebalancing to optimise returns”, said Daniel Cerf, CEO of the REIT’s manager, in a statement on the results.

Units of Cache Logistics Trust slipped by 0.5% from its previous close at the end of the trading day on the Singapore Exchange to finish at SGD0.875.

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.