Mapletree Logistics Trust Q2 DPU up 1.5%

SINGAPORE - Mapletree Logistics Trust (MLT) has posted a distribution per unit (DPU) of 1.887 Singapore cents in the second quarter, up 0.027 cent or 1.5 per cent from a year ago.

This was on the back of higher takings from existing properties in Hong Kong, four acquisitions in Australia, Malaysia and Vietnam, as well as forex translation gains from the stronger Australian dollar.

In fact, the amount distributable to unit holders in the three months to Sept 30 was S$48.2 million, up 3.5 per cent from the same period a year ago although DPU rose by a lesser extent owing to an enlarged units base.

Gross revenue in the second quarter was S$93.7 million, up 2.3 per cent from a year ago. Net property income rose 2.5 per cent to S$78.7 million.

Ms Ng Kiat, chief executive of the trust manager, said the second quarter was an "active quarter" for the industrial landlord. It completed the divestment of three properties in the quarter, namely Zama Centre and Shiroishi Centre in Japan and 4 Toh Tuck Link in Singapore.

The combined divestment gain of approximately S$5.4 million will be distributed to unit holders over six to eight quarters, beginning from the second quarter.

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 manger 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 in the second quarter due to higher occupancies in Singapore, Australia, South Korea, China and Vietnam.

Leases for about 76,600 square metres of space were successfully renewed or replaced in the second quarter out of a total of 83,100 sqm 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 said.

Earnings per unit was 3.45 Singapore cents, up from 0.99 Singapore cents a year ago. Net asset value per unit was S$1.03, up from S$1.00 a year ago.

The counter rose 3.5 cents or 2.82 per cent to finish at S$1.275 on Monday (Oct 23) before the results were announced.