Income from Australian properties boosted first-quarter distributable income at Cache Logistics Trust.
Distribution per unit (DPU) came in at 2.04 cents for the three months to March 31, down 5 per cent from the same period a year ago, due mainly to a higher number of issued units.
Gross revenue jumped 32.7 per cent to $27.9 million and distributable income gained 8.6 per cent to $18.2 million. Net property income increased 12 per cent to $22.1 million.
The chief executive of the trust manager, Mr Daniel Cerf, told The Straits Times that the trust, anticipating headwinds in the local logistics sector, picked up six properties in Australia last year.
He said in a statement: "Our Australian strategy is paying off with the portfolio there contributing 13.8 per cent of the first quarter's gross revenue. We look to continue to expand our footprint in the country with quality assets."
Singapore contributed 85 per cent of this quarter's gross rental income.
AT A GLANCE
GROSS REVENUE: $27.9 million (+32.7%)
NET PROPERTY INCOME: $22.1 million (+12 %)
DISTRIBUTABLE INCOME: $18.2 million (+8.6%)
DISTRIBUTION PER UNIT: 2.04 cents (-5%)
Gross turnover growth also came from income from a new logistics warehouse facility, the DHL Supply Chain Advanced Regional Centre, completed in Singapore last July.
But net property income growth was offset by lower income from Singapore properties converted from master leases to multi-tenancies.
Net financing costs for the quarter were $4.8 million, up 112.4 per cent. The increase is partly due to borrowings relating to acquiring Australian properties and working capital.
Portfolio occupancy as at March 31 was 94.2 per cent and the portfolio weighted average lease expiry was approximately 4.3 years. Just 9.6 per cent of leases are due for expiry in the remainder of 2016.
Cache Logistics noted that the Singapore industrial property market "continues to be weighed down by a combination of an oversupply of industrial space and uncertainty in the global economy".
However, the Government is committed to support the industry with initiatives to improve Singaporeans' employability within the sector, it noted.
Mr Cerf said the firm was looking to secure leases from third-party logistics service providers.
The counter closed 0.5 cent down at 89 cents yesterday. The results were released after the market closed.