Lower turnover and higher expenses sent distribution per unit (DPU) down in the second quarter at mainboard-listed Cache Logistics Trust.
DPU for the three months to June 30 came in at 1.8 cents, 9.5 per cent under the 1.989 cents recorded in the same period a year earlier.
Distributable income dropped 8.8 per cent to $16.3 million from $17.8 million previously, owing mainly to lower income from operations and fees racked up by the ongoing legal proceedings surrounding 51 Alps Avenue and other professional expenses, said the trust manager yesterday.
Net property income fell 4 per cent to $21.7 million, while gross revenue dipped 0.7 per cent to $27.9 million. The weaker showing came on the back of a lower contribution from 51 Alps Avenue due to the legal issues, the conversion of 40 Alps Avenue from master lease to multi-tenancy and the divestment of Cache Changi Districentre 3 in January.
This was offset by better contributions from DHL Supply Chain Advanced Regional Centre, Cache Changi Districentre and Cache Cold Centre, all of which had higher occupancies.
Distributable income sank 10 per cent to $32.5 million for the half year to June 30, while net property income eased 4.9 per cent to $42.4 million and gross revenue was down 1.8 per cent to $55 million.
Earnings per unit for the quarter came in at 1.52 cents, lower than the 1.74 cents previously. Net asset value per unit was 77 cents as at June 30, marginally down from 78 cents as at Dec 31 last year.
AT A GLANCE
NET PROPERTY INCOME: $21.7 million (-4%)
GROSS REVENUE: $27.9 million (-0.7%)
DISTRIBUTION PER UNIT: 1.8 cents (-9.5%)
Mr Daniel Cerf, chief executive of the trust manager, said the trust's Australian assets have seen an increase in year-to-date net property income by close to 11 per cent compared with a year ago. In addition, "the portfolio committed occupancy has improved to 98.3 per cent despite the lingering oversupply in Singapore".
Cache Logistics Trust units closed flat at 94 cents yesterday, before the results were announced.