SINGAPORE (July 31): The manager of Cache Logistics Trust (CLT) has reported a 2Q18 DPU of 1.419 cents, down 17.6% on-year from 1.722 cents a year ago on higher property expenses.
Revenue grew 7.7% y-o-y to $30 million with the full-quarterly contribution from the trust’s recently-acquired, nine-property Australian portfolio, as well as higher contributions from 51 Alps Ave and its rental top-up.
These were however partially offset by the loss of contribution from Hi-Speed Logistics Centre (40 Alps Ave, Singapore) which was divested in May 2018.
Notably, property expenses for 2Q grew 34.6% to $8.4 million compared to $6.2 million a year ago, due to higher property tax, land rent, leasing commissions and maintenance expenses. These largely resulted from the conversion from a master lease to a multi-tenancy lease structure at CWT Commodity Hub during the quarter as well as higher expenses from the enlarged Australia portfolio.
Net property income (NPI) therefore came in marginally lower at $21.6 million compared to $21.7 million a year ago.
As at end June, the trust’s portfolio occupancy stood at 96.8% with a weighted average lease to expiry (WALE) by net lettable area (NLA) at 3.5 years.
Looking ahead, the manager is of the view that the market sentiment has improved on the back of a recent increase in tenant enquiries.
CLT’s manager says it remains focused on its proactive asset management strategy to maintain high occupancy, and optimise overall returns as well as continue its pursuit of strategic acquisitions and asset enhancement initiatives (AEI) to grow its portfolio and earnings over time.
Units in CLT closed flat at 78 cents on Monday.
