The manager of ARA Logos Logistics Trust (formerly ALOG and Cache Logistics Trust) reported a distribution per unit (DPU) of 1.326 cents for 2Q20 ended June, 0.4% higher than the 1.321 cents in 2Q19.

This brings 1H20 DPU to 2.323 cents, representing an 18% decline from 1H19’s DPU of 2.834 cents.

Adjusted DPU for the quarter came in at 1.280 cents, 23.9% higher than the 1.033 cents in 2Q19.  The amount excludes the $0.5 million of the $2.5 million retained previously, which was released as part of this quarter’s distributable income.

No further distributable income was retained this quarter.

The manager says it will continue to review the release of the remaining $2.0 million retained.

Excluding capital and one-off distribution items, 2Q20 and 1H20 DPU would have increased 23.9% and 1.8% y-o-y respectively.

Gross revenue for 2Q20 increased 4.3% y-o-y to $29.0 million due to higher revenue generated from the commencement of new leases for certain properties.

In 1H20, gross revenue fell 1.4% y-o-y to $57.8 million mainly due to transitory downtime between leases at ALOG Cold Centre and Pandan Logistics Hub, rental waivers to qualifying SME tenants, and a weaker Australian dollar.

Property expenses in 1H20 fell 3.8% y-o-y to $13.9 million mainly due to lower maintenance expenses for the Singapore portfolio. No figures were released for 2Q20.

Consequently, 2Q20 net property income (NPI) grew 7.0% y-o-y to $21.9 million. 1H20 NPI fell 0.7% y-o-y to $43.9 million.

As at end June, committed occupancy for the REIT stands at 97.0% with some 1.45 million sq ft of leases successfully executed in 1H20, and a weighted average lease expiry (WALE) of 2.8 years.

Cash and cash equivalents as at end June stood at $18.0 million.

“We are pleased to report that ALOG continues to see a high rental collection rate across the portfolio, while delivering an improved operating and bottom-line performance despite the global uncertainties during this period,” says Daniel Cerf, CEO of the manager.

“This is underscored by a high-quality portfolio and resilience of the logistics sector, which is well-supported by structural demand drivers such as extraordinary growth in e-commerce and the distinct shifts in global supply chain management resulting from the pandemic conditions,” he adds.

From August 15, <a href="https://www.theedgesingapore.com/news/company-news/ara-logos-logistics-trust-appoints-karen-lee-new-ceo" target="_blank">Karen Lee</a> will take over Cerf’s duties as CEO of the manager following his retirement.

Looking ahead, the REIT says logistics and warehouse properties’ rents in Singapore are expected to see an improved outlook, according to a report by Savills Research, due to higher food and cold storage demand. Amongst the various real estate sectors in Singapore, Savills Research believes that the industrial and warehousing markets has the highest potential for a recovery after 2020.

It adds that higher spending on food and consumer goods during the Covid-19 outbreak has resulted in more demand for additional warehouse space on a temporary or permanent basis in Australia. Businesses in the industrial and logistics sector are considered essential services, and rental reliefs are not required to be provided for their tenants so far.

Unitholders can expect to receive their distributions on August 28 for 2Q20.

As at 11.13am, units in ARA Logos Logistics Trust are changing hands 2.5 cents higher, or 4.2% up, at 62.5 cents.

ARA Logos Logistics Trust reports higher 2Q20 DPU of 1.326 cents

Total value of assets seized in money laundering case now more than $2.8 billion

VTAC proposes business combination with live streaming platform 17LIVE

Data is the new oil but is it as dirty?

'Transition credits' could sweeten deal for early retirement of coal-fired power plants: MAS, McKinsey paper

DPM Lawrence Wong appointed as GIC’s deputy chairman

Trade Stocks, ETFs, Forex and Futures with Phillip Nova:

ARA Logos Logistics Trust reports higher 2Q20 DPU of 1.326 cents

Related News

Highlights

Total value of assets seized in money laundering case now more than $2.8 billion

Related News

Fortress Minerals reports 1QFY2024 earnings of US$2.5 mil, 40.2% lower y-o-y

XMH Holdings swings back into the black with 2HFY2023 earnings of $3.14 mil

Boustead Singapore's 2HFY2023 earnings up 145% y-o-y to $22.7 million