Mapletree Logistics Trust posts 0.9% rise in Q2 DPU to 2.268 cents

SINGAPORE - The manager of Mapletree Logistics Trust (MLT) reported a distribution per unit (DPU) of 2.268 cents for the financial second quarter ended Sept 30, up 0.9 per cent from 2.248 cents in the same period a year ago.

The amount distributable to unitholders in the second quarter of financial year 2023/2024 rose 4.2 per cent to $112.5 million, from $108 million previously. This was due mainly to higher revenue from existing assets, along with a divestment gain of $8.8 million during the quarter.

Gross revenue for the second quarter rose 1.5 per cent to $186.7 million, while net property income (NPI) gained 1.2 per cent to $162 million.

The growth was “partly offset by weaker performance in China and revenue loss due to properties that were divested or undergoing redevelopment”, MLT’s manager said in a bourse filing on Tuesday.

The depreciation of various currencies – primarily the yuan, yen, Hong Kong dollar and Australian dollar – against the Singapore dollar also had a negative impact on overall growth during the quarter.

It was mitigated through the use of foreign currency forward contracts to hedge the income from overseas assets, the manager said.

For the six months ended Sept 30, the amount distributable to unitholders gained 3.6 per cent to $224.5 million, with DPU up 0.5 per cent to 4.539 cents when compared with the same period a year ago.

Gross revenue for the first half of FY2023/2024 fell 0.7 per cent to $368.9 million, while NPI declined 1 per cent to $320.1 million.

MLT’s portfolio occupancy stood at 96.9 per cent as at end-September, from 97.1 per cent as at end-June.

Some 89 per cent of leases that were due for expiry during the quarter – totalling 856,000 sq m of space – were renewed or replaced, with the weighted average lease expiry for MLT’s portfolio at approximately three years.

As at end-September, MLT’s aggregate leverage ratio stood at 38.9 per cent, from 39.5 per cent as at end-June.

Total debt outstanding fell by $173 million quarter on quarter to $5.4 billion, due mainly to the “repayment of loans using net proceeds from the divestment of properties in Japan, Malaysia and Singapore”, the manager said.

“At the operational level, our diversified portfolio continues to be resilient with high occupancy and strong tenant retention,” said Ms Ng Kiat, chief executive officer of the manager.

“However, higher borrowing costs and weaker regional currencies continue to impact our financial performance.”

MLT remains “very active on the rejuvenation front”, she added, with more than $900 million of acquisitions and $150 million of divestments announced or completed in the year to date, along with $370 million of ongoing asset enhancement initiatives.

The distribution for the second quarter will be paid on Dec 19, after the record date on Nov 1.

Units of MLT ended trading down 1.34 per cent, or 2 cents, to $1.47 on Wednesday.

THE BUSINESS TIMES