Mapletree Logistics Trust posts 0.2% rise in Q1 DPU to S$0.01816

[SINGAPORE] The manager of Mapletree Logistics Trust (MLT) on Tuesday (Jul 28) posted a distribution per unit (DPU) of S$0.01816 for the first quarter ended June, up 0.2 per cent from S$0.01812 in the year-ago period.

The distribution will paid out on Sep 16, after the record date on Aug 5.

Distributable income rose 1.1 per cent to S$93 million in Q1, from S$92 million in the same period the year before.

The increase comes amid lower borrowing costs, which were down 2.7 per cent on the year at S$38.3 million on the back of refinancing efforts and the paying down of debt with proceeds from divestments, said the manager.

Revenue was up 0.8 per cent at S$178.9 million for the recorded period, from S$177.4 million in the same period a year ago.

Meanwhile, property expenses were S$1.5 million or 6.3 per cent lower.

The manager attributed this mainly to the absence of property expenses from divested properties, the depreciation of various currencies against the Singapore dollar, and lower utilities expenses, partly offset by the full-quarter contribution from Mapletree Joo Koon Logistics Hub.

In this context, net property income rose 2 per cent on the year to S$156.4 million for the quarter, from S$153.4 million previously.

The gains were largely driven by MLT’s recent acquisition in India and full-quarter contribution from the completed Joo Koon redevelopment project in Singapore. This was partly offset by the absence of contribution from divested properties and weaker regional currencies, noted the manager.

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The book value of MLT’s portfolio of 175 assets was S$13.1 billion as at Jun 30. The weighted average lease expiry, by net lettable area, stood at 2.5 years, as at the end of the quarter.

The occupancy rate was 96.4 per cent, and average rental reversion, about 0.9 per cent including China.

MLT’s aggregate leverage ratio stood at 40.5 per cent, while its weighted average borrowing cost was 2.6 per cent per annum for the quarter.

“Looking ahead, we remain mindful that persistent inflationary pressures and ongoing uncertainties could temper economic activity and soften demand for logistics space,” said Jean Kam, chief executive officer of the manager.

“In response, we continue to prioritise portfolio stability while progressing our rejuvenation and capital-recycling initiatives,” she added, citing MLT’s recently announced divestments of two China properties to a renminbi (RMB) fund and another property in Singapore.

MLT’s sponsor, Mapletree Investments, announced on Tuesday the launch its first China onshore logistics fund with China Life Capital, with about 1.5 billion yuan (US$221.6 million) in assets under management.

As part of its capital-recycling strategy, MLT on Jul 22 proposed divesting two warehouses to the new RMB fund for a combined 724 million yuan.

Units of MLT ended Tuesday 0.8 per cent or S$0.01 higher at S$1.20, before the results were released.