Stable portfolio, new buys boost MLT's Q3 results

The Mapletree Logistics Hub Tsing Yi in Hong Kong. Portfolio occupancy improved from 95.8 per cent in the previous quarter to 96.2 per cent due to higher occupancies in Hong Kong, South Korea and Malaysia.
The Mapletree Logistics Hub Tsing Yi in Hong Kong. Portfolio occupancy improved from 95.8 per cent in the previous quarter to 96.2 per cent due to higher occupancies in Hong Kong, South Korea and Malaysia.PHOTO: MAPLETREE LOGISTICS TRUST

Income available for distribution in third quarter up 24.5% to $58.3m

A stable performance and new acquisitions boosted the numbers at industrial landlord Mapletree Logistics Trust (MLT) in the third quarter.

Distribution per unit (DPU) crept up to 1.907 cents from 1.87 cents in the same period a year earlier, despite an enlarged unit base.

"The improvement in results was underpinned by a stable performance from existing properties as well as contributions from accretive acquisitions," it reported yesterday. "Overall growth was partially offset by the absence of contributions from three divestments and one of two blocks under redevelopment in Ouluo Logistics Centre, China."

The trust carried out an equity fund raising last September that included a private placement and a non-renounceable preferential offering on the basis of one new unit for every 10 existing units. This raised gross proceeds of $640 million.

MLT said yesterday that it will pay a distribution of 2.088 cents per unit to unit holders on Feb 28 for the period from Sept 22, when new units were issued under the private placement, to Dec 31. The books closure date is Jan 30.

Income available for distribution in the three months to Dec 31 climbed 24.5 per cent to $58.3 million from the previous year.

The latest distribution includes partial distribution of gains from the divestments of various properties that have been divided up into quarterly payments.

IMPROVED RESULTS

The improvement in results was underpinned by a stable performance from existing properties as well as contributions from accretive acquisitions.

MAPLETREE LOGISTICS TRUST

Gross revenue grew 2.8 per cent to $98.2 million, thanks to higher contributions from existing properties in Hong Kong, one property in Hong Kong acquired in the third quarter and four properties in Australia acquired in the third quarter of the 2017 financial year.

Net property income expanded 3.9 per cent to $83 million from the previous year.

Portfolio occupancy improved from 95.8 per cent in the previous quarter to 96.2 per cent due to higher occupancies in Hong Kong, South Korea and Malaysia.

  • AT A GLANCE

  • GROSS REVENUE:

    $98.2 million (+2.8%)

  • NET PROPERTY INCOME:

    $83 million (+3.9%)

  • AVAILABLE DISTRIBUTION PER UNIT:

    1.907 cents (+2%)

The portfolio also achieved an average rental increase of about 2 per cent for the quarter, contributed mainly by properties in Hong Kong and Vietnam.

MLT has a portfolio of 124 assets in Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam with a total book value of $6.2 billion.

Units closed down two cents to $1.35 yesterday after hitting a five-year high of $1.37 last Friday.

A version of this article appeared in the print edition of The Straits Times on January 23, 2018, with the headline 'Stable portfolio, new buys boost MLT's Q3 results'. Print Edition | Subscribe