Mapletree Logistics Trust posts 11.1% fall in Q3 DPU to S$0.02003
The amount distributable to unitholders declines 9.7% year on year to S$101.3 million, from S$112.2 million
THE distribution per unit (DPU) for Mapletree Logistics Trust (MLT) fell 11.1 per cent to S$0.02003 for its third quarter ended Dec 31, 2024, from S$0.02253 in the prior year.
Revenue was down 0.9 per cent at S$182.4 million for the third quarter, from S$184 million in the year-ago period.
This was mainly due to lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies against the Singapore dollar, the manager said on Tuesday (Jan 21).
However, the decline was partially offset by stronger performance in Singapore, Australia and Hong Kong, and contribution from recent acquisitions, the manager added.
Net property income (NPI) fell 1.4 per cent on the year to S$157.2 million for the quarter, from S$159.5 million.
The amount distributable to unitholders declined 9.7 per cent year on year to S$101.3 million, from S$112.2 million.
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The distribution will be paid out on Mar 13, 2025, after the record date on Jan 31.
For the nine-month period, revenue fell 1 per cent on year to S$547.4 million, while NPI declined 1.5 per cent to S$472.5 million.
The amount distributable to unitholders tumbled 8.7 per cent to S$307.3 million, and DPU was 10.2 per cent lower at S$0.06098.
Jean Kam, chief executive officer of the manager, noted that the majority of the leases that were expiring in 2024 have been renewed or replaced through active lease and asset management.
“As we navigate through an increasingly uncertain macroeconomic environment, we remain focused on maintaining stability in the portfolio, while staying agile and proactive to adapt to evolving market conditions,” she added.
Portfolio occupancy improved to 96.3 per cent in Q3, from 96 per cent last quarter, amid higher occupancy rates across Singapore, South Korea and China.
The weighted average lease expiry was around 2.7 years as at Dec 31, 2024.
Meanwhile, rental reversions were positive across all markets except China. The manager expects that China will remain challenging and continued negative rental reversions.
Portfolio rental reversions stood at 3.4 per cent, compared to -0.6 per cent in the previous quarter. Excluding China, portfolio rental reversions would have been 5.4 per cent, compared to 3.6 per cent the previous quarter.
In Q3, MLT divested three properties in China and Japan, and announced the divestment of another property in Singapore, in line with its portfolio rejuvenation strategy.
Post quarter-end, MLT also announced another two divestments in Malaysia and Singapore.
The manager expects these divestments – totalling S$201 million in sale value – to provide MLT the financial flexibility to recycle capital into acquisitions of assets with higher growth potential.
Ongoing geopolitical conflicts, rising trade tensions and prospects of slower US rate cuts are weighing on business and consumer sentiment, which may affect demand for logistics spaces in Asia, the manager said.
It will closely monitor the shifting trade policies under the Trump administration, their potential impact on international trade and logistics, and the Chinese government’s stimulus measures to boost economic activity, it added.
Units of MLT closed S$0.01 or 0.8 per cent lower at S$1.27 on Tuesday, before the results were released.
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