The manager of ARA LOGOS Logistics Trust (ALOG) has announced distribution per unit (DPU) of 1.329 cents for the 3QFY2021 ended September, 9.0% lower than DPU of 1.461 cents in the 3QFY2020.
The lower DPU was attributable to an enlarged unit base raised for its maiden Australian portfolio acquisition from its sponsor, LOGOS.
On April 16, ALOG announced that it had issued 126.7 million new units at an issue price of 55.25 cents per new unit to Ivanhoé Cambridge China Inc. Another 33.8 million units were issued to LOGOS Units No. 1 for a subscription amount of around $18.7 million, or 55.25 cents per unit.
See: Rise of ‘New Economy’ ESR-LOGOS REIT depends on ALOG’s unitholders
During the 3QFY2021, the REIT saw gross revenue of 34.0 million, up 15.1% y-o-y. Net property income (NPI) stood 13.9% higher y-o-y at $26.1 million.
The higher gross revenue and NPI were due to higher revenue generated from the REIT’s Australian portfolio acquired in April.
The higher figures were also attributable to the commencement of new leases during the quarter as well as the relatively stronger Australian dollar in the 3QFY2021 compared to the same period the year before.
This was partly offset by the divestment of Kidman Park in Australia and ALOG Changi DistriCentre 2 in Singapore in May and June respectively.
Earnings per unit on a diluted basis stood at 2.64 cents for the 3QFY2021, compared to the 1.34 cents in the corresponding period the year before.
Distributable income for the 3QFY2021 grew 20.9% y-o-y to $19.3 million mainly due to the higher NPI and contributions from ALOG’s investments in the new LAIVS Trust and Oxford Property Fund.
For the period ended September, ALOG’s portfolio occupancy stood at 97.6% with a weighted average lease expiry (WALE) of 4.6 years by gross rental income (GRI).
The REIT has secured and renewed over 171,000 sqm of leases year-to-date (y-t-d) with a positive rental reversion rate of 3.2%.
As at end-September, ALOG reported a lower aggregate leverage of 37.8%.
As at Sept 30, the REIT’s appraised value of its investment properties stood at $1.5 billion.
“Underscored by the resilient logistics market fundamentals, ALOG has continued to deliver a strong set of results despite the prolonged Covid-19 outbreak. Its high-quality portfolio also saw a healthy portfolio occupancy of 97.6% and a positive rental reversion of 3.2%. In addition, the portfolio’s occupancy would have improved to 98.6% following the signing of a new lease commitment, which will be effective from October 2021,” says Karen Lee, CEO of the manager.
“This steady set of performance has reaffirmed our positive outlook towards the resiliency of the logistics sector, supported by long-term structural shifts in areas such as e-commerce and supply chain,” Lee adds.
The REIT, on Oct 15, announced its proposed merger with ESR-REIT to form ESR-LOGOS REIT.
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The new REIT is expected to become the top 10 largest S-REIT by free float market capitalisation.
Unitholders will receive their distributions on Nov 26. Books close on Nov 3.
Units in ALOG closed flat at 88.5 cents on Oct 25.