ARA Logos H1 DPU up 10.6% to 2.57 S cents on revenue from Australia acquisition
K2LU 's distribution per unit (DPU) rose 10.6 per cent to 2.57 Singapore cents for the first half ended June 30, 2021, from 2.323 cents the year before.
The growth in H1 2021 DPU came despite the enlarged unit base from the issuance of new units in relation to ARA Logos' maiden Australian portfolio acquisition from its sponsor Logos, the real estate investment trust's (Reit) manager said in a bourse filing on Thursday.
On a like-for-like basis, DPU would have been 0.7 per cent higher on the year at 2.524 Singapore cents after adjusting for the S$2 million retained distributable income in H1 2020 and the S$600,000 capital distribution in H1 2021.
Gross revenue for the half-year period was up 15.2 per cent to S$66.6 million, from S$57.8 million the year before. Meanwhile, net property income (NPI) grew 17 per cent year on year to S$51.4 million, from S$43.9 million.
The rise in gross revenue and NPI was underpinned by incremental revenue generated from the recently completed Australian portfolio acquisition, stronger portfolio performance, as well as the appreciation of the Australian dollar, the manager said.
Distributable income declared to unitholders rose 36.6 per cent to S$34.6 million, from S$25.3 million, mainly due to higher NPI and contribution from the trust's investments in New LAIVS Trust and Oxford Property Fund.
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The Reit will pay a distribution of 1.007 Singapore cents per unit for the April 16 to June 30 period on Aug 27. Previously on May 28, it paid an advanced distribution of 1.563 cents per unit for the Jan 1 to April 15 period.
ARA Logos' portfolio occupancy stood at 98.2 per cent, while its weighted average lease expiry by net lettable area rose to 4.4 years post-Australia portfolio acquisition.
The manager said ARA Logos' financial position remains healthy with an aggregate leverage of 39.5 per cent as at June 30, 2021. The trust has also repaid its S$53 million borrowings due in FY2021 and does not have further refinancing requirements until FY2023.
Karen Lee, chief executive ARA Logos' manager said while the economic climate continues to be challenging, the logistics sector continues to demonstrate its resilience.
"With ARA Logos' expanded portfolio strategically located across key logistics clusters, we are confident that it remains well-positioned to leverage on favourable tailwinds and deliver long-term value to our unitholders," she added.
Units of ARA Logos rose 1.1 per cent or 1 Singapore cent to close at 88 cents on Thursday.
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