SINGAPORE (Jan 18): ARA-CWT Trust Management (Cache), the manager of Cache Logistics Trust, has declared DPU of 1.597 cents for the 4Q17 ended Dec.
This was 9.8% lower compared to the DPU of 1.770 cents declared in 4Q16 due to an enlarged units base after completing a rights issue in Oct 2017.
Excluding the effects of the rights issue, 4Q17 DPU would have fallen a smaller 1.1% to 1.829 cents.
In 4Q17, income available for distribution was $17.1 million, 2.5% higher than in 4Q16.
4Q17 gross revenue and NPI rose by 8.5% and 10.2% to $29.6 million and $23.5 million respectively compared to 4Q16.
This was mainly due to the rental top-up of 51 Alps Ave and incremental contribution from the Spotlight warehouse located at Laverton North, Melbourne, Australia which was acquired in March 2017.
For FY17 ended Dec, gross revenue increased 0.6% to $112 million mainly due to the rental top-up in respect of 51 Alps Ave and higher contribution from the Australia portfolio, DHL Supply Chain Advanced Regional Centre and Cold Centre.
However, NPI fell 0.8% to $87.3 million due to the conversion from a triple-net master lease structure in a soft rental market for 40 Alps Ave and 51 Alps Ave.
Income available for distribution was $66 million while DPU for FY17 was 6.583 cents, 10.9% lower than the 7.391 cents in FY16.
As at Dec 31, CacheLog maintained an aggregate leverage of 36.3%. The average all-in financing cost for the year was reduced to 3.56% compared to 3.60% in FY16.
In a separately filing, manager ARA-CWT announced it has entered into a sale and purchase agreement to divest Hi-Speed Logistics Centre located at 40 Alps Ave on for $73.8 million.
The sale price represents a 7% gain over the valuation of the property as at Dec 31, 2017.
The manager intends to utilise the proceeds to reduce debt and reinvest the capital into higher value-adding assets to generate sustainable earnings.
The impact on DPU and NAV is expected to be marginal at -0.8% and 0.2% respectively.
Looking ahead, ARA-CWT says Singapore’s economic recovery is largely supported by trade-related sectors which is likely to drive greater demand for industrial space, while supply pressure eases in 2018.
In Australia, it is anticipated that yields will remain stable over the next six months with long run growth in industrial property values within the Eastern Seaboard states.
Units in CacheLog closed at 87.5 cents on Thursday.
