Singapore-listed industrial REIT, Cache Logistics Trust, announced on 22 April that it has recorded a distribution per unit (DPU) of 2.039 Singapore cents for its 1Q FY2016, a fall of 5.0% compared to the 2.146 cents paid in the corresponding period of 2015.
Distributable income for the quarter amounted to SGD18.2 million, up 8.6% year-on-year. Correspondingly gross revenue for the period increased 32.7% to SGD27.9 million while net property income (NPI) rose 12.0% to SG22.05 million.
“NPI increased by a slower pace as the incremental income contribution from the Australian portfolio and DHL Supply Chain Advanced Regional Centre was offset by lower income from those Singapore properties converted from single-tenant master leases to multi-tenancies”, said the REIT in a statement on the results.
“In FY2016, our emphasis remains on maintaining high occupancy in the portfolio with the highest achievable income”, said Daniel Cerf, CEO of the REIT’s manager. “We are focusing on our leases which expire in the latter half of FY2016 and extending our portfolio WALE”, he added.
As at 31 March 2016, the portfolio occupancy was 94.2% and a portfolio weighted average lease expiry (WALE) of approximately 4.3 years. Aggregate portfolio leverage was 39.6% with an average borrowing rate of 3.69% for the quarter.
“The Singapore industrial property market continues to be weighed down by a combination of oversupply in industrial space and uncertainties in the global economy”, said the REIT, adding that the near term outlook for the industrial property market is expected to be weak.
Units of Cache Logistics Trust finished the trading day about 0.5% lower from its previous close on the Singapore Exchange to end at SGD0.89.
Financial Performance for 1Q FY2016