SINGAPORE - Cambridge Industrial Trust (CIT) announced a 12.6 per cent drop in its distribution per unit (DPU) to 0.996 Singapore cents for the fourth quarter ended Dec 31, 2016, compared to 1.139 cents a year ago.
Gross revenue dipped 2.5 per cent for the quarter to S$27.8 million, while net property income was 8.8 per cent lower at S$19.7 million.
The revenue drop was mainly due to several master leases expiring and being converted to multi-tenancy, and divestment of properties.
For full-year 2016, DPU fell 12.9 per cent to 4.173 cents from, 4.793 cents in 2015.
Said Mr Shane Hagan, acting CEO of the trust's manager: "While 2016 was a tough year for the industry as a whole, we remained focused on strengthening fundamentals and sustaining value. The strategy of capital recycling and divestment of non-core properties in FY2016 enabled the trust to remain nimble in a challenging environment.
"Despite keen market competition, CIT has successfully leased 1.67 million sq ft of space during the year with proactive occupancy management, a jump from 1.2 million sq ft in FY2015. We maintained a high portfolio occupancy rate of 94.7 per cent, with a healthy 88 per cent retention rate achieved for our multi-tenanted properties."
As announced on Jan 18, e-Shang Redwood (ESR), a pan-Asia logistics real estate developer, has completed the acquisition of an aggregate indirect 80 stake in the trust's manager from National Australia Bank and Oxley Global.
Commenting on the way forward for CIT, Mr Hagan said, "ESR is a strong strategic partner with complementary strengths, industrial experience and presence which will position the trust well for the next stage of our growth."
As at Dec 31, the CIT group has 49 properties in Singapore, with around 215 tenants across the following business sectors: logistics, warehousing, light industrial, general industrial properties, car showroom and workshop, and business park. The portfolio has a carrying value of approximately S$1.35 billion and a total gross floor area of about 8.4 million square feet.
