ARA LOGOS Logistics Trust posts 2H21 net property income grew 16 percent

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ARA LOGOS Logistics Trust (ALOG) reported Tuesday its second half net property income rose 16.1 percent on-year to S$53.47 million on the acquisition of an Australian property portfolio in April 2021 and a stronger portfolio performance in Singapore and Australia.

Gross revenue for the July-to-December period increased 15.1 percent on-year to S$68.68 million, the REIT said in a filing to SGX. 

Th distribution per unit (DPU) for the six-month period was 2.464 Singapore cents, down 15.8 percent from 2.927 Singapore cents in the year-ago period, the filing said.

The decline was due to the enlarged unit base after issuing new units for the Australian portfolio acquisition and for fund investments, the filing said. In addition, distributable income of S$2 million was released in the second half of 2020, the filing said.

At end-December, the portfolio’s committed occupancy was 99 percent, and the REIT posted a positive rental reversion rate of 3.1 percent.

For the full year, the trust reported net property income rose 16.6 percent on-year to S$104.89 million, on gross revenue of S$135.23 million, up 15.2 percent on-year. The full-year DPU is 5.034 Singapore cents, down 4.1 percent from 5.25 Singapore cents the year earlier, the filing said. 

Outlook

In its outlook, ALOG noted Singapore’s industrial sector is expected to continue to see growth this year, driven in part by end-users planning to expand, with support expected for rent and price increases.

In Australia, the industrial sector is seeing strong activity, with Covid-related lockdowns in Sydney and Melbourne driving stronger logistics demand, ALOG said, citing Dexus Research. In addition, competition from companies seeking prime assets combined with low vacancy rates is driving rents higher, ALOG said, citing Dexus Research.

ARA LOGOS Logistics Trust’s portfolio has 29 logistics warehouse properties located in Singapore and Australia, and it also owns a 49.5 percent stake in the New LAIVS Trust and a 40 percent stake in the Oxford Property Fund.

Read more details about ARA LOGOS Logistics Trust’s financial statements.