Due to higher property costs, tapered occupancy rates.
Cache Logistics Trust (Cache)’s net property income in 4Q15 dipped to $19.2m, reflecting a marginal pullback of 1%. According to a report by OCBC, this is on back of a slight slip in occupancy rates and higher property expenses as some of its master leases were converted to multi-tenanted leases.
Meanwhile, revenue for the quarter jumped 16.6% YoY to $24m, boosted mainly by contribution from new acquisitions.
OCBC notes that despite a capital distribution of $2.1m arising from the recent divestment of Kim Heng warehouse, Cache’s DPU saw a marginal pullback of 3.4% YoY to 2.074 S cents as a result of a larger unit base from a private placement exercise. For FY15, DPU declined slightly by 0.9% to 8.50 S cents.
Looking ahead, Cache has 12% of its leases expiring in 2016. This comprises largely two master leases at Schenker Megahub and Hi-Speed Logistics Centre. OCBC points out that there is currently no indication as to whether the master lessees would be renewing their leases.
On the flip side, company management bagged the renewal of the master lease at Air Market Logistics Centre.
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