Cache Logistics Trust’s net property income down 1% to $19.4m in Q4

Due to higher vacancies and maintenance expenses.

Cache Logistics Trust reported that its net property income slipped 1% year-on-year to $19.4m in the fourth quarter.

The decrease in NPI is due mainly to the decrease in gross revenue from vacancies and tenant rent free period; higher property maintenance expenses and lease commissions.

Its gross revenue declined 0.4% YoY to $20.6m, but DPU climbed 0.4% to 2.14 cents. According to OCBC, Cache is currently undergoing a transition period as it is in the midst of converting some of its assets from master-leased properties to multi-tenanted properties.

“We expect some near-term pressure on its NPI margins due to expenses related to these conversions. Concerns over the oversupply situation for Singapore’s industrial space also remain as a concern. On a positive front, CACHE managed to renew the master lease of CWT Commodity Hub with its sponsor CWT. Looking ahead, CACHE will seek to pursue yield accretive acquisitions, with Australia one of its key areas of focus,” stated OCBC.