Oct 27, 2021
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In Q3 2021, ARA LOGOS Logistics Trust’s DPU dipped to 1.329 cents from 1.464 cents, down 9% year-on-year. 

ARA LOGOS Logistics Trust’s distribution per unit (DPU) declined 9% to 1.329 cents in the third quarter of 2021, from 1.464 cents over the same period last year.

The trust’s manager attributed this to an enlarged unit base after the equity raise for its maiden Australian portfolio acquisition from LOGOS, its sponsor.

In Q3 2021, gross revenue rose 15.1% to $34 million from $29.5 million in Q3 2020, while net property income (NPI) climbed 13.9% to $26.1 million from $22.9 million previously.

The hike in gross revenue and NPI were underpinned by higher revenue generated from the Australian portfolio it acquired in April 2021, the commencement of new leases within the quarter and a relatively stronger Australian dollar during the period under review.

It was partially offset by the divestment of Kidman Park in Australia in May and the ALOG Changi DistriCentre 2 in Singapore in June.

Distributable income increased 20.9% to $19.3 million in Q3 2021, from $16.0 million last year, due to higher NPI as well as contributions from the trust’s investments in the New LAIVS Trust and Oxford Property Fund. 

“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,” said Karen Lee, CEO of the trust’s 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.”

The distribution of 1.329 cents will be paid on 26 November, following the book closure on 3 November.

Meanwhile, ARA LOGOS proposed a merger with ESR-REIT on 15 October, with the merged REIT expected to be among the top 10 biggest S-REITs by free float market capitalisation.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg

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