Singapore-listed industrial REIT Cache Logistics Trust has recorded a DPU of 1.847 Singapore cents for its 3Q 2016, 13.7% lower year-on-year from the 2.14 cents achieved in 3Q 2015.

The REIT has attributed the plunge to an enlarged unit base, and a lower income available for distribution, including from 51 Alps Avenue, which is now the subject of a legal dispute, as reported previously here.

Excluding the capital distribution in 3Q FY2015, the quarter’s DPU would have fallen by 5.2%, said the REIT.

However overall gross revenue for the period increased by 21.2% year-on-year to SGD28.0 million (USD20 million), while net property income rose by 17.5% to SGD22.1 million.

This was mainly due to new revenue from its Australian acquisitions, and the DHL Supply Chain Advanced Regional Centre.

“Our portfolio committed occupancy remains high at 96.5%, and over 296,000 square feet of leases were signed during the quarter”, said Daniel Cerf, CEO of the REIT’s manager, in a statement on 21 October.

As at 30 September 2016, the REIT’s aggregate leverage was at 41.2%, up from 39.8% in the previous quarter, primarily due to the revaluation of 51 Alps Avenue in view of the ongoing legal dispute.

Cerf added that the REIT’s weighted average lease expiry (WALE) was at 4.0 years, with just 4.5% of the portfolio’s leases due for renewal in 2017.

“Our financial performance was however affected by lower income received at 51 Alps Avenue, a soft rental market for industrial space in Singapore, and no capital distribution in this quarter compared to the same period last year”, he said.

He remarked however that the REIT remains confident of its property fundamentals, its position on the 51 Alps Avenue property case, and its overseas diversification strategy to weather the current economic conditions in Singapore.

Units of Cache Logistics Trust finished unchanged from its previous trading day on the Singapore Exchange to end at SGD0.88.