Mapletree Logistics Trust's DPU up 4% in 4th quarter

Mapletree Logistics Trust's growth was partially offset by the absence of contributions from four divestments and one of two blocks under redevelopment in Ouluo Logistics Centre (above) in Shanghai's Pudong new district
Mapletree Logistics Trust's growth was partially offset by the absence of contributions from four divestments and one of two blocks under redevelopment in Ouluo Logistics Centre (above) in Shanghai's Pudong new districtPHOTO: MAPLETREE

Trust to buy 50% stake in each of 11 logistics properties in China

Mapletree Logistics Trust (MLT) has posted a 4 per cent rise in fourth-quarter distribution per unit (DPU) to 1.937 cents, the strong performance driven by organic growth, contributions from a newly completed redevelopment in Singapore and acquisitions.

The DPU will be paid on June 6.

The trust manager also announced plans to acquire a 50 per cent stake in each of 11 logistics properties in China for about 985.3 million yuan (S$207 million).

The remaining 50 per cent interest in the properties will be held by subsidiaries of the sponsor of MLT, Mapletree Investments.

The portfolio will double MLT's net lettable space in China to 8.8 million sq ft and increase its e-commerce revenue exposure in China from 18 per cent to 42 per cent.

Most of the tenants there are e-commerce players. The top five tenants are JD.com, Cainiao Smart Logistics Network, Sinotrans, Best Logistics Technology (China) and China Post Group Corporation.

Six of the 11 properties are in China's eastern region, namely in Wuxi, Changshu, Zhenjiang, Nantong, Hangzhou and Jiaxing. Four are in the central region - in Xi'an, Changsha, Wuhan and Nanchang. The remaining one is in Tianjin.

MLT's gross revenue for the three months ended March 31 rose 11 per cent from a year earlier to $107.5 million, while net property income went up 14 per cent to $91.3 million.

  • AT A GLANCE

  • GROSS REVENUE: $107.5 million (+11.4%) 

    NET PROPERTY INCOME: $91.3 million (+13.7%) 

    DISTRIBUTION PER UNIT: 1.937 cents (+4.1%)

Overall growth was partially offset by the absence of contributions from four divestments and one of two blocks under redevelopment in Ouluo Logistics Centre in Shanghai's Pudong new district.

The amount distributable to unit holders rose 27 per cent year on year to $59.2 million.

DPU for the full year came up to 7.618 cents, a 2 per cent rise from the previous year's 7.44 cents.

With continued economic growth projected for the region, demand for logistics properties is expected to remain healthy, the manager of the trust said in a statement.

However, possible escalations in trade tensions and faster-than-expected interest rate hikes in advanced economies may temper this expected growth.

In Singapore, the leasing environment remains competitive in the near term as it takes time for vacant warehouse space to be absorbed by the market. However, new supply is expected to taper in the coming years, the trust manager said.

"In Hong Kong, favourable supply-demand dynamics should continue to support rental rates and high occupancies. MLT's portfolios in Japan and Australia remain stable, underpinned by 100 per cent occupancy rates and long leases."

A version of this article appeared in the print edition of The Straits Times on April 27, 2018, with the headline 'Mapletree Logistics Trust's DPU up 4% in 4th quarter'. Print Edition | Subscribe