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Cache Logistics Q2 DPU at 1.8 cents, down 9.5%
LOWER revenue and higher property-related expenses led to warehouse owner Cache Logistics Trust reporting a distribution per unit (DPU) of 1.8 Singapore cents for the second quarter ended June 30, 2017, down 9.5 per cent from 1.989 cents a year ago.
This gives an annualised yield of 7.7 per cent based on its last traded price of S$0.94.
Gross revenue fell 0.7 per cent to S$27.9 million. The lower revenue was due to the sale of Cache Changi Districentre 3 in January and lower income from 51 Alps Avenue, the subject of legal proceedings. This was partly offset by higher revenue from DHL Supply Chain Advanced Regional Centre, Cache Cold Centre and newly acquired property, Laverton North, Australia.
Net property income fell 4 per cent to S$21.7 million, due to lower revenue and higher expenses due to the conversion of mainly 51 Alps Ave and 40 Alps Ave master leases to multi-tenancies.
Distributable income was 8.8 per cent lower to S$16.3 million due to lower operational income and higher trust expenses from legal fees for the ongoing 51 Alps Ave proceedings, and other professional fees.
But DPU from operations was 5.3 per cent better than the first quarter due to portfolio rebalancing and proactive leasing efforts, the real estate investment trust (Reit) said.