SINGAPORE - Cambridge Industrial Trust (CIT) saw its distribution per unit (DPU) drop 9 per cent to 1.139 Singapore cents for the third quarter ended Dec 31, from 1.252 cents a year ago.
The drop was due to a change in form of payment of management from units to cash and reduced capital distributions.
These outweighed the 10.7 per cent rise in net property income to S$21.6 million. Gross revenue was 8.7 per cent higher at S$28.5 million.
For the full year, DPU fell 4.2 per cent to 4.793 cents from 5.004 cents a year ago due to lower distributions from capital and capital gains.
Said Mr Philip Levinson, CEO of CIT's manager: "Despite a difficult year, we stayed focused on our business in 2015, in short we did what we said we would do. CIT's portfolio sustained double digit NPI growth for three consecutive quarters this year, with positive rental reversions of 9.1 per cent and above industry average occupancy. Our prudent capital management has been the highlight of 2015."
Looking ahead, Mr Levinson said, "CIT is well-positioned to perform favourably relative to the market. We will continue to seek appropriate opportunities in Singapore, Australia and Japan in order to achieve sustainable growth and increase Unitholder returns. With more than 20 per cent of our portfolio due for lease renewals in the coming year, proactive asset management will be key to delivering value through conversions and Asset Enhancement Initiatives."
As at Dec 31, CIT has a portfolio of 51 industrial properties in Singapore with around 187 tenants. The portfolio has a carrying value of approximately S$1.4 billion and a total gross floor area of approximately 8.5 million square feet.
Weighted average lease expiry and portfolio occupancy remained steady at 3.8 years and 94.3 per cent respectively.