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

Cache Logistics Trust has reported a distribution per unit (DPU) of 1.321 cents for its 2Q 2019, a fall of 6.9% on-year.

The industrial REIT’s gross revenue for the period decreased by 7.4% to SGD27.8 million on-year, mainly attributable to the conversion from a master lease to a multi-tenancy lease structure at Cache Gul LogisCentre.

The REIT also reeled from the absence of contribution from 40 Alps Ave and Jinshan Chemical Warehouse which were divested in 2018, and transitory downtime due to replacement of tenants at Commodity Hub.

However, this was partially offset by the contribution from the newly acquired warehouse located in Victoria, Australia in April 2019.

The REIT’s net property income (NPI) for the period decreased by 5.4% on-year due to lower revenue and higher property expenses resulting from the conversion of Commodity Hub, and Cache Gul LogisCentre from a master lease to a multi-tenancy structure.

Correspondingly, distributable income for the quarter dipped to SGD14.3 million mainly due to lower NPI and a one-off reversal of professional fees associated with the 51 Alps Ave’s legal proceedings in 2Q FY18.

The REIT’s aggregate leverage as at 30 June 2019 was at 37.9%, while financing cost stood at 3.86%.

Since quarter-end, the REIT has successfully secured commitment for a further 308,000 square feet of space, improving its committed occupancy to 92.6%.

Cache Logistics Trust is currently trading about 2.5% lower from its previous close, at SGD0.78.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.