The manager of ARA LOGOS Logistics Trust (ALOG) has reported distribution per unit (DPU) of 1.461 cents for 3QFY2020 ended September, 11.3% higher than the 1.313 cents reported in the corresponding quarter a year ago.
Gross revenue for the quarter rose 6.5% y-o-y to $29.5 million due to higher contribution from the trust’s overall portfolio and commencement of new leases to certain properties. Net property income (NPI) consequently grew 8.3% y-o-y to $22.9 million.
Distributable income for 3QFY2020 increased 12.3% y-o-y to $16.0 million.
On a like-for-like basis, excluding capital and one-off distributions, DPU would have been 17.9% higher y-o-y.
The manager has also released $1 million out of the remaining $2 million it retained as part of the quarter’s distributable income to unitholders.
It says it will continue to review the release of the remaining retained income while “remaining mindful of the current conditions”.
Year-to-date, FY2020 gross revenue and NPI rose 1.1% and 2.2% y-o-y to $87.3 million and $66.8 million respectively.
The growth is attributable to the commencement of new leases at certain properties and higher revenue contribution across the portfolio.
DPU y-t-d, however, fell 8.8% y-o-y due to capital and one-off distributions.
On a like-for-like basis, DPU would have been 7.0% higher y-o-y instead.
ALOG’s committed occupancy as at end September stood at 97.0% with a weighted average lease expiry (WALE) of 2.6 years by net lettable area (NLA).
“Despite the challenging operating climate as a result of the impact of the Covid-19 pandemic, ALOG’s logistics portfolio has continued to deliver a robust performance for the quarter, seeing a 11.3% higher y-o-y DPU of 1.461 cents,” says Karen Lee, CEO of the manager.
“Supported by a resilient logistics sector and the strong demand for modern logistics warehouses, ALOG’s quality portfolio is well-positioned to tap on these growth drivers to continue to deliver higher organic growth and stable performance for its unitholders,” Lee adds.
Looking ahead, ALOG says Singapore’s warehouse and prime logistics spaces continue to see stable leasing appetite underpinned by higher demand from e-commerce, food logistics and third-party logistics players.
In Australia, the industrial and logistics sector has proved to be “resilient” so far.
Unitholders can expect to receive their DPU on Nov 27, 2020.
Units in ALOG closed 2 cents lower or 3.2% down at 61 cents on Oct 26.
See: ARA LOGOS Logistics Trust acquires properties and fund investments in Australia for total consideration of $404.4 mil, first since rebranding
