Mapletree Logistics Trust declares higher DPU of 2.048 Singapore cts

MAPLETREE Logistics Trust (MLT), releasing its results on Thursday after market close, has declared a distribution per unit (DPU) of 2.048 Singapore cents for the fourth quarter ended March 31, up 1.2 per cent from 2.024 Singapore cents in the year-ago period.

The real estate investment trust (Reit) posted higher distributable income of S$77.8 million, up 6.2 per cent from S$73.3 million.

Net property income for the quarter rose 9.3 per cent to S$114.7 million, up from S$105 million. Gross revenue was up 5.5 per cent at S$128.1 million, from S$121.4 million.

The improved performance was driven mainly by higher revenue from existing properties and contributions from accretive acquisitions in Malaysia, Vietnam, South Korea and Japan, said MLT.

"While the logistics sector has been relatively resilient so far, we are mindful that the Covid-19 situation is dynamic and could negatively affect our business performance," said the chief executive officer of the Reit manager, Ng Kiat. "During this period, proactive lease management, tenant retention and maintaining a strong balance sheet remain our top priorities."

In MLT's top three core markets, all tenants are fully operational in Hong Kong and Japan; in Singapore, about 5 per cent of its tenants have been affected by Covid-19 measures.

Tenants from the hardest-hit sectors of retail, hospitality and travel account for about 10 per cent of MLT's revenue. Tenants serving essential needs such as food and beverage products, consumer staples and healthcare account for more than 30 per cent of the reit's revenue.

As at March 31, MLT's assets under management totalled S$8.9 billion, up S$959 million from a year ago. The gain was due mainly to about S$806 million in acquisitions and capital expenditure, and another S$117 million net appreciation in investment properties, attributable mainly to properties in Hong Kong. With this, net asset value per unit rose 3.4 per cent to S$1.21.

MLT's portfolio occupancy rose marginally to 98 per cent from 97.7 per cent in the previous quarter, with higher occupancy in Hong Kong and China. The weighted average lease expiry (by net lettable area) is 4.3 years.

The fourth-quarter distribution will be paid out on June 12, with a record date of May 4. This brings total DPU for the year to 8.142 Singapore cents, up from 7.941 Singapore cents the previous year.

With the latest quarter's figures, full-year net property income was up 12.6 per cent at S$438.5 million; the full-year gross revenue rose 8 per cent to S$490.8 million.

MLT units closed up S$0.03 or 1.74 per cent at S$1.75 on Thursday before the release of the results.