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MACARTHURCOOK Industrial Reit (MI-Reit) posted a 19.4 per cent drop in distribution to unitholders for its fourth quarter ended March 31. Its existing debt facility of $220.8 million has also been extended to Dec 31, 2009, by its lenders, National Australia Bank and Commonwealth Bank of Australia. The limit of the facility - which was set to mature on June 16 - has been cut to $202.3 million. The facility comes with an 'all in interest margin' of 5 per cent per annum.
'This extension of the facility gives MI-Reit additional time to secure a longer term refinance of its debt, a process in which the manager is actively engaged,' the company said yesterday in its financial statement. MI-Reit has an aggregate leverage of 41.2 per cent as at March 31, 2009, and is looking to 'progressively reduce MI-Reit's leverage ratio to 30-35 per cent over time'.
Distribution to unitholders fell to $5 million for the three months from $5.8 million a year ago. The distribution to unitholders includes $1.44 million retained in the three previous quarters. This translates to a Q4 distribution per unit (DPU) of 1.875 cents, down 15.5 per cent compared with 2.22 cents a year ago.
Net property income for the quarter rose 15.7 per cent to $9.27 million from $8.02 million, thanks to contributions from the nine properties acquired in the past year.
For the full-year, MI-Reit posted a 19.4 per cent increase in distribution to unitholders to $23.4 million from $19.6 million a year ago. This translates to a DPU of 8.925 cents, up 18.7 per cent from 7.52 cents. Net property income surged 48.5 per cent to $36.9 million. MI-Reit - which aims to distribute at least 90 per cent of its taxable income for the full financial year - distributed all of its taxable income available for distribution to unitholders.
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