Cache Logistics Trust posts 17.6% fall in DPU for Q2

WAREHOUSE owner Cache Logistics Trust reported a second-quarter distribution per unit (DPU) of 1.419 Singapore cents, down 17.6 per cent from 1.722 Singapore cents in the year-ago period.

For the three months ended June 30, income available for distribution fell 6.3 per cent to S$15.2 million, mainly due to lower net property income (NPI) from CWT Commodity Hub, which was converted from master lease to multi-tenancy, the divestment of its Hi-Speed Logistics Centre in May, as well as distribution to perpetual security holders.

NPI came in flat at S$21.6 million, down 0.1 per cent from last year.

Meanwhile, gross revenue was up 7.7 per cent to S$30 million, thanks to incremental earnings from its nine-property Australia portfolio acquired in February, and higher contribution from 51 Alps Ave and its rental top-up.

Distributable income for the six months to June 30 was down 3.4 per cent to S$31.4 million, while DPU fell 15.1 per cent to 2.926 Singapore cents from 3.445 Singapore cents, after factoring in an enlarged units base.

Gross revenue for the half-year period came in 7.5 per cent higher at S$59.1 million from a year ago, while NPI was up 4.9 per cent to S$44.5 million.

Looking ahead, ARA Trust Management (Cache) which manages the trust, is of the view that market sentiment has improved on the back of a recent increase in tenant enquiries.

Said the manager's CEO, Daniel Cerf: "With our continuing efforts at rebalancing and growing the portfolio, Cache's operating metrics remained healthy, notwithstanding the weakness in our DPU.

"During the quarter, we successfully executed 15 new leases and renewals totalling 762,000 square feet, achieving a strong committed portfolio occupancy of close to 97 per cent, with only 3.1 per cent of the portfolio due to expire in the second half of the year."

Cache will pay a distribution of 1.419 Singapore cents per unit on Aug 29, with the books closure date on Aug 7.

The trust closed flat at 0.78 Singapore cent per unit on Monday.