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Cambridge Industrial Trust (CIT) saw its gross revenue for the first quarter ended 31 March 2017 marginally decreased by 2.2 percent to S$27.7 million from S$28.4 million in the previous year.
Net property income fell 8.4 percent to S$19.7 million from S$21.5 million previously, mainly due to “the impact of several master leased properties that were converted into multi-tenancy properties in FY2016 as well as the impact from recent divestments”.
With this, distribution per unit (DPU) dropped 9.7 percent to 1.004 Singapore cents from 1.112 Singapore cents in Q1 2016.
The trust’s portfolio, as at 31 March 2017, comprises 49 properties in Singapore, “with diversified tenant base of about 213 tenants and a total gross floor area of approximately 8.4 million sq ft, across the following business sectors: logistics, warehousing, light industrial, general industrial properties, car showroom and workshop, and business parks”.
CIT revealed that its leasing team renewed and secured 326,870 sq ft of new leases in Q1 2017, improving its occupancy to 95.4 percent.
With the weighted average lease expiry stable at 3.7 years, the trust’s net gearing ratio remained within the target range of 30 to 40 percent.
Looking ahead, Adrian Chui Wai Yin, CEO and executive director of the trust’s manager, expects pressures on rental terms to “continue due to the prolonged soft economic environment and rental market”.
“Nevertheless, the manager will continue to focus on improving occupancy rates and maximise tenant retention in the current challenging leasing market,” he added.
This article was edited by Denise Djong.
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