Higher takings from properties in Hong Kong, four regional acquisitions as well as forex translation gains from the stronger Australian dollar boosted Mapletree Logistics Trust (MLT) in the second quarter.
MLT posted a distribution per unit (DPU) of 1.887 Singapore cents in the three months to Sept 30, up 0.027 cent or 1.5 per cent from a year earlier.
In fact, the amount distributable to unit holders was $48.2 million, up 3.5 per cent from the same period last year although DPU rose by a lesser extent owing to an enlarged unit base.
Gross revenue in the second quarter was $93.7 million, up 2.3 per cent from the previous year, while net property income rose 2.5 per cent to $78.7 million.
Ms Ng Kiat, chief executive of the trust manager, said the period was an "active quarter" for the industrial landlord.
It completed the divestment of three properties - Zama Centre and Shiroishi Centre in Japan and 4,Toh Tuck Link in Singapore.
The combined divestment gain of approximately $5.4 million will be distributed to unit holders over six to eight quarters, beginning from the second quarter.
AT A GLANCE
REVENUE: $93.7 million (+2.3%)
DISTRIBUTABLE AMOUNT: $48.2 million (+3.5%)
DPU: 1.887 cents (+1.5%)
The rest of the capital released has been redeployed into higher-yielding assets, such as Mapletree Logistics Hub Tsing Yi in Hong Kong, she said.
The trust manager said it continues to see sustained leasing activities across its diversified markets.
It said: "Singapore's market recovery is still slow due to pressure from the increase in supply of warehouse space. Hong Kong is expected to remain a strong market for MLT.
"In addition, Japan and Australia continue to provide stable income streams underpinned by 100 per cent occupancy rates and long weighted average lease expiries."
Portfolio occupancy improved from 95.5 per cent in the previous quarter to 95.8 per cent due to higher occupancies in Singapore, Australia, South Korea, China and Vietnam.
Leases for about 76,600 sq m of space were renewed or replaced in the second quarter out of a total of 83,100 sq m due for expiry, representing a success rate of 92 per cent.
For leases renewed during the quarter, the rentals achieved were on average 1.4 per cent higher than the preceding rental rates, attributable mainly to Hong Kong and China, the trust manager said.
Earnings per unit was 3.45 cents, up from 0.99 cent a year ago. Net asset value per unit was $1.03 as at Sept 30, up from $1.02 as at June 30.
The counter closed 3.5 cents or 2.82 per cent up at $1.275 yesterday before the results were announced.