ARA LOGOS Logistics Trust reports 34% reduction in DPU for 1Q

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ARA LOGOS Logistics Trust (ALOG) has achieved distributable Income of SGD10.9 million for its 1Q 2020.

The REIT was formerly known as Cache Logistics Trust, and announced the name change to ‘ARA LOGOS Logistics Trust’ on 28 April.

The rebranding follows the completion of ARA’s acquisition of a majority stake in LOGOS on 5 March.

LOGOS now operates as ARA’s exclusive global logistics real estate platform.

Meanwhile the REIT’s distribution per unit (DPU) of 0.997 cents for the period is 34.1% lower than what was reported in the corresponding period of the previous financial year.

This is partly due to retention of distributable income for the period.

Accordingly, ALOG’s gross revenue and net property income (NPI) declined by 6.6% and 7.3% year-on-year over the same period to SGD28.8 million and SGD22 million respectively.

The lower figures are attributable to the conversion of Cache Gul LogisCentre from master lease to multi-tenancy in April 2019, transitory vacancy downtime between leases, lower signing rents for leases as compared to the previous leases and a weaker Australian dollar.

There have been no defaults recorded and only minimal disruption to ALOG’s portfolio resulting from the COVID-19 pandemic thus far, said the REIT.

The REIT’s committed occupancy was 97.1%, up from 95.3% as at end-December 2019.

Its portfolio WALE by net lettable area was 2.9 years at end-March 2020.

As at 31 March 2020, ALOG’s aggregate leverage ratio stood at 40.8% and the all-in financing cost stood at 3.63%.

“Although well-supported by high occupancy and strong tenants, the manager recognizes the need to be prudent on the back of an uncertain outlook ahead due to the COVID-19 pandemic and circuit breaker measures”, said the REIT.

“It is in this light that ALOG will distribute approximately 80% of the total distributable income, amounting to approximately SGD10.9 million for 1Q 2020, conserving capital to address potential rental deferment and/or waivers required to support some tenants through this challenging period”, it added.

Data from ARA LOGOS Logistics Trust’s latest results have been updated into the Singapore REITs table.

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