Singapore-listed industrial REIT, Cache Logistics Trust, announced on 20 July that it has recorded a distribution per unit (DPU) of 1.989 Singapore cents for its 2Q 2016, a fall of 7.1% compared to the 2.14 cents achieved for 2Q 2015.
The REIT has attributed the fall mainly to an enlarged unit base and highlighted that the 2Q FY2015 DPU included a capital distribution of 0.185 cents per unit from the divestment of Kim Heng Warehouse.
Gross revenue for the period increased by 30.3% year-on-year to SGD28.1 million while net property income (NPI) and income available for distribution rose by 21.9% and 6.2% year-on-year to SGD22.6 million and SGD17.8 million respectively.
The REIT has attributed the rise in revenue and NPI mainly to the Australian acquisitions in the last financial year, and revenue from its DHL property in Singapore.
The REIT’s leverage is currently at 39.8% with an average all-in cost of financing of 3.63%, and a weighted average debt maturity of 2.6 years.
On its outlook for the quarters ahead, the REIT warned that the operating environment in Singapore remains challenging although overall economic growth is continuing in Australia.
“Looking ahead, the manager will continue to maintain high portfolio occupancy, enhance building performance and explore asset rebalancing to optimise returns”, said Daniel Cerf, CEO of the REIT’s manager, in a statement on the results.
Units of Cache Logistics Trust slipped by 0.5% from its previous close at the end of the trading day on the Singapore Exchange to finish at SGD0.875.
Singapore-listed hospitality REIT, Ascott Residence Trust (Ascott REIT), announced on 20 July that it has recorded a distribution per unit (DPU) of 2.13 Singapore cents for its 2Q 2016, an increase of 2% compared to the 2.09 cents achieved for 2Q 2015.
The DPU would have shown an increase of 3% to 2.16 cents if the effect of Ascott REIT’s equity placement in March 2016 was excluded.
Revenue and gross profit for the period increased by 21% and 17% year-on-year to SGD119.4 million and SGD57.9 million respectively. Correspondingly RevPAU for the period increased by 10% to SGD142.
“We continued to achieve double-digit growth in revenue due to our SGD609 million acquisitions last year and the recent acquisition in New York for SGD218 million”, said Lim Jit Poh, chairman of the REIT’s manager.
“Our entry into the US last year not only propelled Ascott REIT into a global hospitality player, our two U.S. acquisitions were the biggest contributors to revenue growth”, said Lim, adding that Ascott REIT’s portfolio size will expand to SGD5.3 billion once the acquisition of Ascott Orchard is completed in 2017.
Moving forward, Ascott REIT said that it will be actively managing its portfolio, including carrying out refurbishments, to maximise returns.
“We will also continue to be prudent in our capital management by tapping the debt capital market to diversify our funding sources and securing longer term financing at an optimal cost”, said Ronald Ta, CEO of the REIT’s manager.
Units of Ascott REIT finished the trading day about 0.8% higher from its previous close on the Singapore Exchange to end at SGD1.14.
Singapore-listed CapitaLand Commercial Trust disclosed on 20 July that it has achieved an estimated distribution per unit (DPU) of 2.20 Singapore cents for its 2Q 2016, a marginal increase of 0.5% compared to the 2.19 cents recorded for 2Q 2015.
The DPU has been computed on the basis that none of the convertible bonds due 2017 is converted into units, said the REIT. The DPU may be adjusted should these bonds be converted on or before the books closure date, it added.
Gross revenue and net property income (NPI) for the period declined by 2.2% and 4.5% to SGD67.6 million and SGD51.5 million respectively.
The REIT has attributed these falls due to lower occupancy and higher operating expenses.
As at 30 June 2016, the office REIT’s aggregate leverage was at 29.8% with an average cost of debt of 2.5% per annum.
However, while CapitaLand Commercial Trust’s occupancy rate of 97.2% is still higher than the Singapore office market occupancy rate of 95.1% for the quarter, the REIT has also warned that supply of new office space in the country is expected to increase in the months ahead.
“The Singapore office market continued to see declines in occupancy and rental rates given the impending completion of above-average new office supply in the core central business district (CBD)”, said the REIT.
CapitaLand Commercial Trust said that it expects the full income contribution from its newly acquired property CapitaGreen to bolster NPI for 4Q 2016 onwards, possibly mitigating the effect of higher office supply.
Units of CapitaLand Commercial Trust last changed hands on the Singapore Exchange 1.2% lower from its previous close at SGD1.55.
Singapore-listed Keppel REIT announced on 19 July that it has achieved a distribution per unit (DPU) of 1.61 Singapore cents for its 2Q 2015, a fall of 6.4% compared to the 1.72 cents recorded for 2Q 2015.
Correspondingly the office REIT’s gross revenue and net property income (NPI) for the quarter fell by 5.6% and 6.5% year-on-year and came in at SGD40.5 million and SGD32.5 million respectively.
The REIT has attributed the fall in numbers mainly to the absence of contribution from the Australian property, 77 King Street, which was divested in 1Q 2016.
“Excluding contribution from 77 King Street, property income and net property income for the current portfolio remained stable in 2Q 2016”, said Keppel REIT in its statement on the results.
“Despite the subdued office market, the manager achieved positive rent reversion of approximately 2% for new, renewal and forward renewal leases in the first half of 2016”, said the REIT, claiming that its Singapore offices command above-market rents due to the portfolio's grade and location.
Keppel REIT’s gearing for the quarter was at 39% with average cost of debt at 2.55%.
“The manager believes that Keppel REIT is well positioned to weather the current challenging conditions, supported by its proactive leasing and capital management, as well as its sterling property portfolio and quality tenant profile”, it added.
Units of Keppel REIT finished the trading day about 1.4% lower from its previous close on the Singapore Exchange to end at SGD1.08.
Singapore-listed retail REIT, Frasers Centrepoint Trust, announced on 15 July that it has recorded a distribution per unit (DPU) of 3.04 cents for its 3Q 2016, up 0.1% from the corresponding period of the previous financial year.
Gross revenue achieved for the period was SGD45.0 million, 4.4% lower compared to the SGD47.0 million in 3Q 2015. Similarly net property income (NPI) for the period declined by 5.1% to SGD31.2 million.
The REIT has attributed the falls in gross revenue and NPI mainly to lower contributions from its Northpoint property which is currently undergoing asset enhancement works.
Frasers Centrepoint Trust’s overall portfolio occupancy has also declined as at 30 June 2016 from 92.0% to 90.8% from the previous quarter due to the fitting-out of a new anchor tenant at Changi City Point.
Occupancy rate at other malls other than Northpoint and Changi City Point remained relatively stable but portfolio shopper traffic and tenant sales declined by 0.4% and 1.8% year-on-year, said the REIT.
“We continue to maintain tight watch over our financial position and borrowing costs amidst these volatile times”, said Chew Tuan Chiong, CEO of the REIT’s manager. He added that the REIT has fully refinanced the SGD264 million of borrowings which was due in July 2016.
The REIT’s gearing level is at 28.5% with an all-in average cost of debt at 2.259%.
Units of Frasers Centrepoint Trust finished the trading day flat from its previous close on the Singapore Exchange at SGD2.12
Singapore-listed health care REIT, First REIT, announced on 14 July that its has achieved a distribution per unit (DPU) of 2.2 Singapore cents for its 2Q 2016, an increase of 1.9% compared to the 2.07 cents paid in 2Q 2015.
This came on the back of healthier gross revenue and net property income figures that grew by 6.5% and 6.9% to SGD26.6 million and SGD26.3 million respectively.
Amount distributable for the period also increased by 5.8% to SGD16.24 million.
First REIT has attributed the healthier numbers to contributions from its Kupang property, comprising of Siloam Hospitals Kupang & Lippo Plaza Kupang, which was acquired in December 2015.
The REIT’s gearing is currently 34% but this is expected to be lowered to 30% due to the recent issuance of subordinated perpetual securities that will be used to pay off some loans, and expand debt headroom for acquisitions.
First REIT has pointed to Indonesia’s ageing population and a national health insurance scheme as factors that will continue to underpin demand for private health care facilities in the future.
“First REIT will continue to keep a lookout for yield-accretive acquisitions in the region to boost growth, particularly in Indonesia where its Sponsor, PT Lippo Karawaci Tbk, continues to expand its healthcare portfolio to the current strong pipeline of 43 hospitals for potential acquisition”, said the REIT.
Book closure date has been set on 25 July 2016 at 5.00 p.m. while ex-dividend date is 21 July 2016 at 9.00 a.m. Payment of dividends will take place on 26 August 2016.
Units of First REIT last changed hands on the Singapore Exchange at SGD1.30 before all securities were suspended from trading on the bourse around mid-day do to a technical glitch.
Singapore-listed industrial REIT, Soilbuild Business Space REIT (Soilbuild REIT), announced on 13 July that it has achieved a distribution per unit (DPU) of 1.565 Singapore cents for its 2Q2016, a fall of 3.1% compared to the 1.615 cents recorded in 2Q2015.
Gross revenue for the period slipped marginally by 0.1% to SGD19.6 million but net property income (NPI) grew 3.7% to SGD17.3 million on the back of lower property tax expenses, said the REIT in its statement on the results.
“With the slowdown in the manufacturing sector which resulted in a soft leasing environment, the portfolio occupancy has dipped to 92.0% at end of 2Q FY2016 as compared to the industrial average of 90.1% as at 1st Quarter FY2016”, said Roy Teo, CEO of the REIT’s manager.
According to the REIT’s presentation on its results, this is the lowest recorded portfolio occupancy ever.
“The challenge remains to re-let the vacant space and to renew the multi-tenanted leases that are expiring for the rest of the year which makes up 2.0% of the portfolio’s net lettable area”, he added.
The REIT’s aggregate gearing is at 35.9% with a weighted average debt maturity of 3.4 years and an average interest cost of 3.44%.
“We will continue to focus on active asset management while maintaining our prudent approach in capital management”, said the REIT in a statement on its outlook.
Units of Soilbuild REIT finished the trading day about 0.7% higher from its previous close on the Singapore Exchange to end at SGD0.70.