Cambridge Industrial Trust’s DPU drops 7.5% to 1.27 cents

Cambridge Industrial Trust (CIT) said on Wednesday its first quarter distribution per unit (DPU) fell 7.5 per cent to 1.27 cents, from 1.38 cents in the same period a year ago.

Its distributable income for the quarter ended March 31 declined 7.2 per cent to S$11.1 million, from S$11.9 million in the previous corresponding period.

The lower DPU also came on the back of lower property income which fell 2.7 per cent to S$16.3 million in the three-month period.

Still, CIT said that its underlying property fundamentals have remained resilient, with first quarter portfolio occupancy increasing to a robust level of 99.9 per cent, a weighted average lease expiry of 4.4 years and continued low arrears trending at around 1.0 per cent of annualised rent.

Gross revenue fell 1.5 per cent from S$18.9 million in 2009 to S$18.6 million in the first quarter this year.

Moving forward, CIT’s chief executive, Chris Calvert, said: “(CIT) will continue its efforts to deliver unitholders with a stable and secure income stream by pro-actively managing future tenant lease expiries and debt expiries well ahead of their due dates.

“It will also consider and implement, where feasible, value-adding asset enhancement initiatives and look to undertake value accretive acquisitions at an appropriate time of the market.”

Source : Channel NewsAsia – 21 Apr 2010

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