Cache Logistics Trust's Q3 DPU down 4.3% to 1.475 cts

Singapore

CACHE Logistics Trust reported a 4.3 per cent drop in distribution per unit (DPU) to 1.475 Singapore cents for its fiscal third quarter.

The drop was attributed to lower capital distribution compared with the same period last year. The real estate investment trust (Reit) also retained about S$0.2 million (net of relevant expenses) with respect to a tax matter relating 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 is Nov 2, with distribution for the quarter to be paid out on Nov 28.

The Reit recorded net property income (NPI) of S$23.1 million for the quarter under review, up 8.1 per cent compared with Q3 2017. The increase in NPI was mainly due to higher revenue for the portfolio, but this was 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 for the quarter ended Sept 30 was up 14.8 per cent at 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, it was partly offset by lower contribution from the sale of Hi-Speed Logistics Centre in May 2018.

"As announced last week, we successfully completed the refinancing of our Singapore-dollar loan facilities which were due in 2018," the Reit manager's chief executive Daniel Cerf said, noting that the process has "significantly improved" Cache's capital structure and operational flexibility.

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

Cache Logistics units ended flat at 71 Singapore cents on Friday.