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Cache Logistics Trust Q3 DPU down 4.3% to 1.475 S cents

CACHE Logistics Trust (CLT) reported a 4.3 per cent lower distribution per unit (DPU) of 1.475 Singapore cents for its third fiscal quarter in 2018, compared with the previous corresponding quarter's 1.54 Singapore cents.

The lower DPU was attributed to lower capital distribution compared with Q3 last year and about S$0.2 million (net of relevant expenses) retained with respect to a tax matter related to its property at 51 Alps Ave in Changi.

Income available for distribution fell 3.6 per cent to S$15.86 million.

The books closure date has been set for Nov 2, 2018, with distribution for the quarter paid out on Nov 28, 2018.

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The real estate investment trust (Reit) recorded net property income (NPI) of S$23.1 million for the quarter under review, rising 8.1 per cent or S$1.7 million compared with Q3 2017. The increase in NPI was mainly due to higher revenue for the portfolio, but partially offset by higher property expenses from the conversion of CWT Commodity Hub from a master lease to a multi-tenancy lease structure and the newly acquired nine-property Australian warehouse portfolio.

Gross revenue was up 14.8 per cent for the quarter ended Sept 30, 2018 to S$31.5 million, mainly due to the Australia warehouse portfolio - acquired on Feb 15, 2018 - higher revenue from 51 Alps Ave as well as CWT Commodity Hub as a result of the conversion from a master lease to a multi-tenancy lease structure. However, revenue was partly offset by lower contribution from the sale of Hi-Speed Logistics Centre in May 2018.

The manager's chief executive officer Daniel Cerf noted that the Reit's Australia portfolio now contributes to about 23 per cent of gross revenue.

"As we continue to rebalance, optimise and grow the Cache portfolio, we must also maintain a prudent capital management approach. As announced last week, we successfully completed the refinancing of our Singapore-dollar loan facilities which were due in 2018. In the process, we have significantly improved Cache's capital structure and operational flexibility through achieving a largely unencumbered portfolio and extending our average debt maturity," Mr Cerf added.

As at Sept 30, 2018, the Reit has a portfolio occupancy of 96.9 per cent, and its WALE (weighted average lease expiry) by net lettable area was 3.3 years.

"Along with its focus on proactive capital management and asset management, the manager will continue to execute on its portfolio rebalancing and growth strategy to rejuvenate, optimise and strengthen its portfolio," the Reit said.

CLT's counter was trading 0.7 per cent up to 71.5 Singapore cents as at 10.02am on Friday.