SINGAPORE - Cambridge Industrial Trust reported a drop in its first quarter distribution per unit as property income was dragged down due to property coversions.
DPU for the three months to March 31 came in at 1.004 Singapore cents, down 9.7 per cent compared with a year ago.
Net property income of S$19.7 million was 8.4 per cent lower, "due mainly to the impact of several master leased properties that were converted into multi-tenancy properties in 2016 as well as the impact from recent divestments," CIT manager said on Tuesday (April 25).
The conversions also led to higher property expenses, which rose 17.1 per cent year on year in the period.
The CIT portfolio comprises 49 industrial, business park and logistics properties in Singapore. The latest occupancy rate was 95.4 per cent.
The trust's gearing ratio was within the target range of 30 to 40 per cent, with no major refinancing requirements until the second half next year.
Trust manager chief executive Adrian Chui cautioned that pressures on rental terms will likely continue "due to the prolonged soft economic environment and rental market."
"The manager will continue to focus on improving occupancy rates and maximise tenant retention in the current challenging leasing market."