Cache Logistics Trust's Q4 net property income up 11.3% to $21.3m

Contributions from DHL Supply Chain kicked in.

Cache Logistics Trust reported a good quarter in 4Q16 as it ended the period with an 11.3% increase in net property income to $21.3m. Its gross revenue jumped 13.5% YoY to $27.3m due to incremental rental contribution from DHL Supply Chain Advanced Regional Centre and its Australian properties but partially offset by lower revenue from 51 Alps Ave.

However, its distribution per unit slumped 10.8% YoY to 1.85 Singapore cents. This was due to a larger unit base and smaller capital distribution of $756k in 4Q16 which arose from the sales proceeds of an asset disposal, versus $2.1m in 4Q15.

"Excluding the distributions from capital, CACHE’s adjusted DPU would have declined by a smaller pace of 3.9%. For FY16, CACHE’s gross revenue spiked 24.0% YoY to S$111.3m and constituted 101.9% of our full-year forecast. DPU of 7.725 Singapore cents represented a dip of 9.1% and made up 101.7% of our FY16 projection. Excluding capital distributions, CACHE’s adjusted FY16 DPU would have fallen 5.4%," OCBC Investment Research said.

To recall, Cache announced that it has completed the divestment of its Changi Districentre 3 property to Agility International Logistics Pte Ltd for a sale price of $25.5m.