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Cambridge Industrial Trust Q3 DPU drops despite higher net property income

INDUSTRIAL landlord Cambridge Industrial Trust posted lower distribution for the third quarter despite a double-digit rise in net property income.

Distribution per unit fell to 1.204 Singapore cents for the three months to Sept 30, down 3.7 per cent from the previous year, the trust said in a Singapore Exchange filing on Thursday.

This was on the back of a 1.6 per cent slide in distributable income to S$15.6 million year-on-year.

The decline occurred even though gross revenue jumped 13.8 per cent to S$28.5 million and net property income climbed 10.5 per cent to S$21.7 million for Q3.

The trust said in its statement that a lack of contribution from capital and capital gains in Q3 this year made distributable income less than the previous year's.

It added that rental reversions year-to-date were "positive" at 8.5 per cent.

"We will continue to proactively manage lease renewals and the conversion from single to multi-tenancy in order to optimise occupancy and rental yields," said the trust manager's chief executive officer Philip Levinson.