Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)Soilbuild REIT's Eightrium in Changi Business Park (Photo: REITsWeek)

Singapore-listed industrial landlords, Cache Logistics Trust and Soilbuild Business Space REIT, have reported a 9.1% and 6.1% fall in full-year DPUs for FY 2016 respectively, citing less-than-ideal business conditions in the country.

For its 4Q 2016, Cache Logistics Trust achieved a DPU of 1.85 Singapore cents, 10.8% lower year-on-year compared to the 2.074 cents recorded in the corresponding period of 2015.

This was despite the 13.5% and 11.3% year-on-year increases in gross revenue and net property income, which came in at SGD27.2 million (SGD19.1 million) and SGD21.3 million respectively.

The increases are mainly attributable to the incremental revenue from the REIT’s Australian acquisitions, and DHL Supply Chain Advanced Regional Centre.

However this was offset by the lower income from 51 Alps Avenue in Singapore, said the REIT, whose aggregate leverage was 43.1% at the end of the financial period.

“If the proceeds from the divestment of Cache Changi Districentre 3 were used in entirety to repay debt, the aggregate leverage will be reduced to 41.9%”, said the REIT in its statement on the results, on 23 January.

Cache Logistics Trust’s committed portfolio occupancy for the quarter was at 96.4%, with a weighted average lease expiry (WALE) of 3.9 years.

Meanwhile Soilbuild REIT achieved a DPU of 1.57 cents for its 4Q 2016, 2.7% lower from the 1.614 cents reported in the corresponding period of 2015.

This was also despite the 6.1% and 8.0% increases in gross revenue and net property income, which came in at SGD21.7 million and SGD18.9 million respectively.

The increases were mainly due to full quarter revenue contribution from Bukit Batok Connection, said the REIT.

Soildbuild REIT’s aggregate occupancy for the period was at 89.6%, largely due to the termination of lease at 72 Loyang Way with Technics Offshore Engineering.

The manager of Soilbuild REIT has indicated that it expects near-term financial performance to be weaker than the preceding quarters should it be unable to find a replacement tenant prior to the full utilisation of the security deposit provided by Technics Offshore Engineering.

Units of Cache Logistics Trust and Soilbuild REIT last changed hands on the Singapore Exchange at SGD0.81 and SGD0.65 respectively.

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.