Mapletree Logistics Trust's DPU flat in Q2

Performance bolstered by acquisitions, renovated properties despite 'challenging market conditions'

Despite "challenging market conditions", Mapletree Logistics Trust's second-quarter performance was bolstered by acquisitions and renovated properties.

The total amount distributable to unit holders inched up 1 per cent to $46.6 million for the three months ended Sept 30 year on year.

This included the partial distribution of gains from selling a property at 20, Tampines Street 92, and another at 134, Joo Seng Road.

Distribution per unit (DPU) for the quarter remained unchanged at 1.86 cents from a year earlier. This will be paid out on Dec 2.

Net property income increased 5.3 per cent to $76.8 million, and gross revenue grew 4.7 per cent to $91.6 million.

  • AT A GLANCE

  • GROSS REVENUE: $91.6 million (+4.7%)

    NET PROPERTY INCOME: $76.8 million (+5.3%)

    DISTRIBUTION PER UNIT: 1.86 cents (unchanged)

The improvements were mainly driven by contributions from acquisitions and organic growth from the existing portfolio, said the trust's manager.

While overall growth was constrained by challenging market conditions in Singapore, this was mitigated by initial contribution from a redeveloped logistics hub here, and an extension building at Moriya Centre in Japan.

Net asset value per unit stood at $1 as of Sept 30, compared with $1.02 as of the same time last year.

The trust manager noted that for the second quarter, the trust started with 118 properties and ended with 124, while in the same period a year ago it had started with 118 properties and ended with 119.

As of Sept 30, the trust's 124 properties had a book value of $5.3 billion and a gross floor area of about 3.5 million sq m.

The overall portfolio occupancy rate was 96.4 per cent as of Sept 30, while the weighted average lease expiry by net lettable area stood at about 4.1 years. The trust's properties achieved positive rental reversions of about 2 per cent.

The trust manager noted that the leasing environment is challenging, especially for several single-user assets, adding that "subdued global economic conditions have continued to weigh on business and consumer sentiment".

Ms Ng Kiat, chief executive of the trust manager, said the results were "underpinned by the portfolio's resilience and our firm focus on managing lease expiries and tenant retention".

During the second quarter, three acquisitions were completed for about $161 million, strengthening the trust's presence in "the prime logistics hubs of Sydney, Shah Alam and Binh Duong".

The trust manager will still "seek investment and asset enhancement opportunities that deliver long-term value", and focus on asset management and lease renewals or replacements to manage portfolio returns.

The trust's units closed half a cent higher at $1.055 yesterday.

A version of this article appeared in the print edition of The Straits Times on October 25, 2016, with the headline 'Mapletree Logistics Trust's DPU flat in Q2'. Print Edition | Subscribe