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Cambridge Industrial Trust posts lower Q2 distributable income and DPU
CAMBRIDGE Industrial Trust (CIT) on Friday posted a 10.9 per cent year-on-year drop in its second-quarter distributable amount to S$14.07 million as earnings in the same period a year ago were lifted by a one-off capital distribution.
Distribution per unit (DPU) was 1.078 Singapore cents, down 12 per cent year on year. It will be paid on Aug 31.
Revenue for the quarter was up 1.7 per cent to S$28.3 million, lifted by the contribution from a property acquisition in the prior year and the leasing up and rent escalations of several properties in the existing portfolio.
Net property income slid 2 per cent to S$21.17 million, dragged down by higher property expenses.
On the outlook, the group said the difficult current operating environment, coupled with a number of master leases expiring in Q2 and Q3, 2016, are expected to impact CIT's results for the next two quarters.
"Despite the headwinds, we see the present challenging market as an opportunity to recalibrate our business and lay the groundwork for the future. We are progressing well on the execution of our strategy to recycle capital through the sale of non-core properties and reduce gearing," it said.