The manager of ARA LOGOS Logistics Trust has declared distribution per unit (DPU) of 2.927 cents for the 2HFY2020 ended December, 8.9% higher than DPU of 2.689 cents a year ago.
This was spread over an enlarged unit base due to the private placement units issued on Nov 11, 2020, and preferential offering units issued on Jan 25.
On a like-for-like basis, excluding capital and one-off distribution items, adjusted DPU would have been 2.646 cents for the half-year period, 16.3% higher than DPU of 2.275 the year before.
2HFY2020 distributable income grew 14.9% y-o-y to $33.5 million, which includes the remaining $1.0 million distributable income retained in 1QFY2020. The higher sum was mainly due to the better performance registered in the REIT’s Singapore portfolio, lower financing costs, higher capital distribution and the release of the remaining distributable income.
No further distributable income has been retained for the year.
2HFY2020 gross revenue stood 8.6% higher y-o-y at $59.6 million mainly due to the commencement of new leases at ALOG Commodity Hub, ALOG Gul LogisCentre, ALOG Changi DistriCentre 1 and Pandan Logistics Hub. Additional revenue from DHL Supply Chain ARC also contributed to the higher half-year figure.
Property expenses in 2HFY2020 increased slightly at 2.1% y-o-y to $13.6 million due to higher lease commissions and maintenance expenses for the Singapore portfolio and allowance for doubtful debts for certain Australia properties.
Accordingly, 2HFY2020 net property income (NPI) grew 10.7% y-o-y to $46.1 million.
For the FY2020, DPU came in 4.9% lower to 5.250 cents from DPU of 5.523 cents in FY2019 due to the enlarged unit base over the FY.
Excluding the one-off capital distribution of $1.3 million in FY2020, adjusted DPU stood 8.8% higher at 5.152 cents compared to DPU of 4.736 cents in FY2019.
FY2020 gross revenue grew 3.4% y-o-y to $117.4 million mainly due to the new leases that commenced during the year.
Property expenses during the period fell 1% y-o-y to $27.4 million.
As a result, FY2020 NPI grew 4.8% y-o-y to $90.0 million.
FY2020 distributable income fell 1.6% y-o-y to $58.8 million, which is 100% of ALOG’s taxable and tax-exempt income.
As at Dec 31, 2020, the REIT’s committed occupancy rate stood at 98.5% with a weighted average lease expiry (WALE) of 2.8 years by net lettable area (NLA).
The portfolio also achieved positive rental reversion of 9.8% and 4.8% in 2HFY2020 and FY2020 respectively.
Cash and cash equivalents as at Dec 31, 2020, stood at $26.4 million.
“We are pleased to have concluded FY2020 with a strong performance for our unitholders. Our robust financial and operational performance, which were achieved despite the challenges resulting from the Covid-19 pandemic, reflects the strength and defensiveness of ALOG’s portfolio,” says Karen Lee, CEO of the manager.
Unitholders can expect their distributions to be paid on Feb 26.
Units in ALOG closed flat at 68 cents on Jan 25.
