Mapletree Logistics Trust delivers higher DPU in Q4

Mapletree Logistics Trust has delivered a fourth-quarter distribution per unit (DPU) of 1.86 cents, up 3.3 per cent from a year ago.

Gross revenue in the three months ended March 31 jumped 9.1 per cent from a year ago to $96.5 million, due mainly to contributions from four acquisitions in Australia, Malaysia and Vietnam completed in the last 12 months.

Takings from the completed redevelopments, namely Mapletree Logistics Hub at Toh Guan in Singapore and the extension building in Moriya Centre in Japan, higher revenue from existing properties in Hong Kong and higher translated revenue from the stronger Japanese yen and Hong Kong dollar also lifted the top line.

However, revenue growth was partly offset by lower contributions from certain properties in Singapore, negative rental reversion for a lease extension in South Korea, as well as the impact of a weaker Chinese yuan.

As the income streams are substantially hedged, the impact of currency movements to the distribution is mitigated, the trust said.

Net property income in the first quarter was $80.3 million, up 10.5 per cent from a year earlier.

  • AT A GLANCE

    Q4 NET PROPERTY INCOME 

    $80.3 million (+10.5%)

    Q4 GROSS REVENUE

    $96.5 million (+9.1%)

    Q4 DPU

    1.86 cents (+3.3%)

Borrowing costs rose 5.4 per cent to $12.9 million, due to incremental borrowings to fund acquisitions, which was partly offset by lower costs from Japanese yen loans.

The amount available for distribution to unit holders rose 4.1 per cent to $46.6 million.

For the full year ended March 31, DPU rose 0.8 per cent year-on-year to 7.44 cents on the back of stronger performance from existing properties, asset enhancement projects, and the four accretive acquisitions.

The portfolio occupancy rate remained stable through the year, ending at 96.3 per cent as at March 31, compared with 96.2 per cent a year earlier.

The trust manager said: "Economic uncertainty and geopolitical volatility continue to affect business sentiment.

"However, demand for logistics space, underpinned by growing domestic consumption, remains stable."

A version of this article appeared in the print edition of The Straits Times on April 28, 2017, with the headline 'Mapletree Logistics Trust delivers higher DPU in Q4'. Print Edition | Subscribe