CIT Q1 gross revenue up 3.2%

Cambridge Industrial Trust’s (CIT) gross revenue increased by 3.2 percent to S$28.4 million in Q1 2016 compared to S$27.5 million a year ago, while net property income rose 1.2 percent to S$21.5 million from S$21.2 million previously.
However, distributable income fell by 7.5 percent to S$14.5 million from S$15.7 million, whereas Distribution Per Unit (DPU) declined 9.2 percent to 1.11 cents versus 1.22 cents in Q1 2015.
But if adjusted for all management fees payable in cash and capital distribution is excluded, the DPU climbed 3.8 percent to 1.11 cents versus 1.07 cents during the first quarter of last year.
“We maintained momentum in Q1 2016 despite challenging market conditions,” said Philip Levinson, CEO of CIT’s manager, Cambridge Industrial Trust Management Limited (CITM), adding that occupancy levels remained healthy and surpassed the industry average.
As of 31 March 2016, the average occupancy of CIT’s properties reached 94.1 percent. The average portfolio rental remains unchanged at S$1.27 per sq
As of 31 March 2016, the average occupancy of CIT’s properties reached 94.1 percent. The average portfolio rental remains unchanged at S$1.27 per sq ft, while the weighted average lease expiry (WALE) stands at 3.6 years.
The trust also completed the asset enhancement initiative (AEI) at 86 International Road and the facility has obtained its Temporary Occupation Permit (TOP) during the said period.
Moreover, CIT’s manager announced on Thursday (28 May) that it has signed an agreement with Commercial and General (C&G) to explore opportunities in Australia’s industrial property market.
“C&G is a leading Australian industrial property specialist. They will act as our eyes and ears in the Australian Industrial sector and co-invest with us when suitable properties are found,” he noted.
The manager has also recently appointed Goldman Sachs (Singapore) to assist it in analysing certain recent trends in the Singapore REIT sector and their potential implications to CIT. This is in line with the firm’s “strategic review of its business and operations.”
Meanwhile, the manager plans to install more solar panels in CIT’s properties, with nine already outfitted with this feature.
“We are committed to conducting business responsibly and sustainably, and aspire to attain Green Mark certification for our assets, wherever economically possible, to become one of Asia’s greenest Industrial REITs”, added Levinson.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg

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