Cache Logistics Trust reports 2.5% increase in distributable income for Q4 FY2017

CACHE Logistics Trust reported a 2.5 per cent year-on-year increase in its distributable income to S$17.1 million for the fourth quarter ended Dec 31, 2017.

Its distribution per unit (DPU) was 1.597 Singapore cents for the quarter, compared to 1.770 Singapore cents the year before, based on an enlarged units base following a rights issue in October 2017. Excluding the effects of the rights issue, its DPU would have been 1.829 Singapore cents for Q4 2017, compared to 1.850 Singapore cents in Q4 2016.

Its gross revenue was up 8.5 per cent y-o-y to S$29.6 million, and its net property income was 10.2 per cent higher y-o-y at S$23.5 million. This was mainly attributable to the rental top-up at its 51 Alps Ave property and the incremental contribution from its Spotlight warehouse in Melbourne, Australia, offset by a drop in revenue from its divestment of Changi Districentre 3, a lower contribution from Changi Districentre 2 and higher property expenses.

Cache Logistics Trust also announced on Thursday the proposed divestment of Hi-Speed Logistics Centre at 40 Alps Ave in Singapore for S$73.8 million. The trust's manager, ARA-CWT Trust Management (Cache) Limited, said that the divestment is in line with its portfolio rebalancing and growth strategy, and that the sale price represents an approximate 7 per cent gain over the valuation of the property as at Dec 31, 2017. The manager said that it intends to utilise the proceeds "to reduce debt and reinvest the capital into higher value-adding assets to generate sustainable earnings".