SINGAPORE (Jan 25): The manager of Cache Logistics Trust announced DPU for 4Q18 declined by 5.9% to 1.502 cents, compared to 1.597 cents in 4Q17.
This was on the back of a 5.3% decrease in distributable amount to unitholders to $16.2 million from $17.1 million a year ago.
This brings DPU for FY18 to 5.903 cents, 10.3% lower than 6.583 cents in FY17.
During the quarter, gross revenue was 4.8% higher at $31.0 million, compared to $29.6 million in the previous year, mainly attributable to the 9-property Australia warehouse portfolio acquired on Feb 15, 2018 and CWT Commodity Hub as a result of the conversion from a master lease to a multi-tenancy lease structure.
This was partly offset by a lump-sum rental top-up in the same quarter last year subsequent to the amicable resolution at 51 Alps Ave as announced on Oct 31, 2017 and lower contribution from the divestment of 40 Alps Ave.
Due to the conversion of CWT Commodity Hub from a master lease to a multi-tenancy lease structure and the newly acquired Australian portfolio, property expenses increased 25.8% y-o-y to $7.62 million, bringing net property income to $23.4 million, 0.6% lower than $23.5 million last year.
Other trust expenses saw a significant increase to $582,000 from $28,000 in a year ago.
During the quarter, the trust also experienced a significant increase in foreign exchange loss to $3.86 million from just $0.19 million last year.
Looking ahead, the manager says that it will continue to pursue opportunities for strategic acquisitions and asset enhancements to strengthen its portfolio and grow earnings over time.
Daniel Cerf, CEO of the manager says, “During the year (FY18), ARA took full control of the Manager and increased its stake substantially to become the single largest Unitholder in Cache. This significant development demonstrates ARA’s confidence and strong support in Cache, and we will continue to capitalise on ARA’s established foothold to grow the REIT.”
Units in Cache Logistics Trust last traded at 74 cents on Thursday.
