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Cache Logistics Trust changes name to ARA Logos Logistics Trust; posts Q1 DPU of 0.997 S cent

CACHE Logistics Trust will be renamed ARA Logos Logistics Trust (ALog) with effect from 9am on Tuesday. 

The real estate investment trust's (Reit) trading name on the Singapore bourse will be changed to ARA Logos Log Tr from Cache Log Trust with effect from 9am on April 30. Meanwhile, the Reit's stock code, K2LU, remains unchanged.

As part of the rebranding, the manager, previously known as ARA Trust Management (Cache), has also been renamed ARA Logos Logistics Trust Management.  

In addition, the Reit's website address will be changed to www.aralogos-reit.com from www.cache-reit.com with effect from 9am on Tuesday.

In a press statement, the manager noted that the renaming signifies the transformation of ALog, which is now part of logistics property firm Logos. In March, ARA Asset Management announced that it has completed the acquisition of a majority stake in Logos. 

The manager added that the rebranding signifies strong commitment from ARA and Logos to grow the Reit and generate long-term sustainable returns for unitholders.

Logos operates as ARA's exclusive logistics real estate platform, and has S$9.4 billion in assets under management as at Dec 31, 2019. 

Separately, ALog on Tuesday also announced a distribution per unit (DPU) of 0.997 Singapore cent for the first quarter ended March 31, 2020 from 1.513 cents a year ago. 

This distribution will be paid out on May 29, following books closure on May 8. 

Distributable income to unitholders fell 33.5 per cent to S$10.9 million, from S$16.3 million a year earlier, in part due to retained earnings of S$2.5 million or 20 per cent of distributable income. 

The lower DPU to unitholders is mainly to conserve capital to "address potential rental deferment and/or waivers required to support some tenants through this challenging period", the manager said.

Net property income (NPI) slipped 7.3 per cent to S$22 million from S$23.8 million, while gross revenue was down 6.6 per cent to S$28.8 million from S$30.8 million in the previous year.

Lower gross revenue was mainly due to the conversion of Cache Gul LogisCentre from master lease to multi-tenancy in April 2019, transitory vacancy downtime between leases, lower signing rents for leases as compared to the previous leases, as well as a weakerAustralian dollar, the manager said. This was partially offset by the additional rental contribution from the acquisition of a warehouse located in Altona, Victoria, Australia in April this year. 

The decline in NPI was mainly attributable to lower gross revenue and higher expenses incurred from the conversion of Cache Gul LogisCentre from master lease to multi-tenancy, partially offset by lower expenses from the Australia portfolio, the manager added. 

Units in the Reit closed at 51.5 Singapore cents on Monday, up 0.5 cent or 1 per cent. 

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