SINGAPORE - Cache Logistics Trust posted a distribution per unit (DPU) of 1.321 cents for its second quarter ended June 30, down 6.9 per cent from 1.419 cents from the year-ago period, the real estate investment trust's (Reit) manager said on Thursday morning (July 25).

Net property income (NPI) fell 5.4 per cent to $20.5 million for the quarter from $21.6 million a year ago due to lower revenue and higher property expenses, mainly from converting the master lease to a multi-tenancy lease structure at Commodity Hub and Cache Gul LogisCentre.

The property expenses were partially offset by the exclusion of $1.5 million in land rent due to the adoption of Singapore Financial Reporting Standard 116 Leases (FRS 116) effective Jan 1.

Gross revenue shrank 7.4 per cent to $27.8 million from $30 million in the year-ago period.

The decrease was primarily due to lower rental income from Cache Gul LogisCentre after the master lease was converted to a multi-tenancy lease, the absence of contribution from the divestments of 40 Alps Ave in May 2018 and Jinshan Chemical Warehouse in December 2018, as well as transitory downtime between replacement tenants in Commodity Hub during the quarter.

This was partially offset by revenue contribution from the warehouse in Altona, Victoria, Australia which was acquired in April 2019.

Distributable income slipped 6.2 per cent to $14.3 million for the quarter, from $15.2 million a year ago. This was because of lower performance of the Singapore portfolio attributable to Commodity Hub and Cache Gul LogisCentre, as well as a one-off reversal of professional fees associated with 51 Alps Ave's legal proceedings in Q2 2018.

Cache will pay the Q2 distribution on Aug 28. The books closure date is Aug 2.

For the half year to June 30, NPI edged down 0.6 per cent to $44.2 million while gross revenue fell 0.7 per cent to $58.6 million from a year ago.

This was likewise due to lower performance from the two Singapore properties after converting their master leases to a multi-tenancy lease structure, as well as the absence of contribution from the two divestments in 2018.

This was partially offset by the full half-year contribution from the nine-property Australia portfolio acquired in February 2018.

DPU for the half year stood at 2.834 cents, down 3.1 per cent from 2.926 cents in the year-ago period.

The Reit's portfolio as at June 30 comprised 27 logistics warehouse properties located in Singapore and Australia.

Units of Cache Logistics Trust closed at 79.5 cents on Wednesday, up 1.5 cent or 1.92 per cent.