ARA LOGOS Logistics Trust (ALOG) has reported a distributable income of $34.6 million for the 1HFY2021 ended June, up 36.6% y-o-y from $25.3 million previously.
This translates to a distribution per unit (DPU) of 2.57 cents, up 10.6% y-o-y from 2.323 previously.
The higher DPU follows a 15.2% y-o-y growth in gross revenue to $66.6 million, resulting in a 17.1% y-o-y growth in net property income (NPI) to $51.4 million.
ALOG’s manager attributes the stronger revenue and NPI to incremental revenue generated from the recently completed Australian portfolio acquisition, stronger portfolio performance as well as appreciation of the Australian dollar.
In addition to the stronger NPI, distributable income was also boosted by contribution from ALOG’s investments in the New LAIVS Trust and Oxford Property Fund respectively, totaling $2.6 million.
1HFY2021 DPU grew by 10.6% to 2.57 cents despite the enlarged unit base due to the issuance of new units in relation to the maiden Australian portfolio acquisition from its Sponsor, LOGOS.
On a like-for-like basis, adjusting for the $2 million retained distributable income in 1HFY2020 and the $0.6 million capital distribution in 1HFY2021, DPU would have been 0.7% higher y-o-y.
Describing the results as a “strong start to the first half of FY2021, Karen Lee, CEO of the manager, says that the completion of maiden Australian portfolio acquisition, along with the divestments of two lower-yielding assets, have enhanced the REIT’s competitive positioning.
“While the economic climate continues to be challenging, the logistics sector continues to demonstrate its resilience. With ALOG’s expanded portfolio strategically located across key logistics clusters, we are confident that it remains well-positioned to leverage on favourable tailwinds and deliver long-term value to our unitholders,” Lee adds.
As at 30 June 2021, ALOG’s financial position remains healthy with aggregate leverage at 39.5%, while its cash and cash equivalents stood at $38 million. The manager highlights ALOG has also repaid the $53 million borrowings due in FY2021 and there will be no further refinancing requirements until FY2023.
In its results announcement, the manager also disclosed that in view of the evolving market environment, ALOG undertook a mid-year desktop valuation exercise on its property portfolio.
The appraised value of its investment properties increased to $1.5 billion as at 30 June, largely due to the addition of the Australian portfolio and an appreciation in value of several investment properties, offset by the completed divestments. ALOG’s fund investments have also appreciated in value to approximately $265.4 million.
Including the fund investments, ALOG’s total portfolio is valued at approximately $1.8 billion. Consequently, ALOG’s net asset value (NAV) per unit also rose by 17.5% to 67 cents from 57 cents as at 31 Dec, 2020.
See also: ALOG enters first sustainability-linked interest rate swap with HSBC Singapore
ALOG executed 127,300 square metres of leases during the 1HFY2021 with a positive rental reversion rate of 2.4%. ALOG’s portfolio occupancy stood at a healthy 98.2%. The portfolio’s WALE by net lettable area also increased to 4.4 years, following the completion of the Australian portfolio acquisition.
ALOG also completed divestments of ALOG Changi DistriCentre 2 in Singapore and Kidman Park in Australia, successfully recycling $59.3 million in capital. These selective divestments continue to be in line with the Manager’s ongoing strategy to build a more resilient and quality portfolio and to optimise returns for Unitholders.
As at 30 June, ALOG’s portfolio comprises of 29 properties, out of which nine properties in Singapore account for 55.3% of portfolio valuation and 20 properties in Australia account for 44.7%. ALOG also has 49.5% and 40% stakes in the New LAIVS Trust and Oxford Property Fund respectively.
In terms of outlook, the manager states that despite the global uncertainties, ALOG’s defensive portfolio has continued to remain resilient, with the trust “well-positioned for future growth”.
ALOG had previously paid out DPU of 1.563 cents for the period between January 1 to April 15 in May. Excluding this ALOG will pay the remainder DPU of 1.007 cents for the period between April 16 to June 30 on August 27.
Units in ALOG closed down 1.5 cents or 1.69% lower at 87 cents on July 21.
Photo: ALOG
