Mapletree Logistics Trusts posts 6% rise in Q1 distributable income

SINGAPORE - Asia-focused Mapletree Logistics Trust (MLT) has chalked up a 6 per cent rise in distributable income to unitholders to $46.6 million for the first quarter.

Distribution per unit (DPU) for the three months to June 30 was up 5.6 per cent at 1.9 cents.

Gross revenue rose 7 per cent to $81 million, primarily due to contributions from Mapletree Benoi Logistics Hub and one South Korea property acquired last year, positive rental reversions mainly in Hong Kong and Singapore, as well as higher revenue from four Japan properties which completed the installation of solar panels last year.

Net property income rose by 6 per cent to $69 million after accounting for higher property expenses from the enlarged portfolio and costs associated with the conversions of single-user assets to multi-tenanted buildings in Singapore.

Portfolio occupancy rate in the first quarter was 97.6 per cent, down from 98.3 per cent in the previous quarter.

This was mainly due to slightly lower occupancies in Singapore and South Korea, but partially offset by higher occupancies in Hong Kong, China and Malaysia.

Leases for some 75,400 square metres of space were due for expiry in the first quarter, of which 92 per cent had been successfully renewed or replaced.

The portfolio continued to see rental hikes, with rentals of renewed or replacement leases on average 12 per cent higher than the preceding ones.

The weighted average lease term to expiry for the portfolio is around 4.7 years, with 46 per cent of the leases having expiry dates in the financial year ending 2018 and beyond.