Mapletree Logistics Trust posts 5.8% rise in Q3 DPU to S$0.02185

MAPLETREE Logistics Trust M44U (MLT) on Friday (Jan 28) posted a distribution per unit (DPU) of S$0.02185 for the third fiscal quarter ended Dec 31, 2021, up 5.8 per cent from DPU of S$0.02065 for the corresponding quarter in the year before.

This Q3 FY21/22 DPU comprises an advanced distribution of S$0.01461 for the period Oct 1 to Dec 1 last year that was paid out on Jan 12, and a balance distribution of S$0.00724 for the period Dec 2 to Dec 31 last year that is payable on Mar 22.

This took the trust's DPU for the 9 months ended December to S$0.06519, up 5.7 per cent from DPU of S$0.06165 in the corresponding year-ago period.

Gross revenue for the quarter under review was up 19.3 per cent year on year to S$166.9 million from S$139.9 million, due primarily to higher revenue contributions from the trust's acquisitions in China, Vietnam, South Korea, Japan, Australia and India that were completed in FY21/22 and FY20/21, as well as lower rental rebates granted to eligible tenants impacted by Covid-19.

Topline growth was, however, outpaced by a 34.9 per cent rise in property expenses to S$20.4 million from S$15.1 million due to the higher expenses from the aforementioned acquisitions, higher property and land tax, and higher allowance for doubtful receivables.

Consequently, net property income was up 17.4 per cent to S$146.4 million from S$124.7 million.

As at end-December last year, MLT's portfolio comprised 167 properties with a total value of S$11.5 billion.

Portfolio occupancy stood at 97.8 per cent as at end-2021, with a weighted average lease expiry of 3.6 years. The portfolio had a positive average rental reversion of about 2.5 per cent, contributed by renewal or replacement leases from across almost all of MLT's markets.

The trust said that through proactive leasing efforts, leases for approximately 339,500 square metres (sq m) of space were successfully renewed or replaced out of a total of 429,400 sq m due for expiry, translating to a success rate of 79 per cent.

As at end-December, MLT also has a gearing ratio of 34.7 per cent with an average debt duration of 3.5 years. The trust said its gearing ratio is expected to increase to 39.1 per cent upon the completion of the proposed acquisitions of 16 properties in China and Vietnam.

In its outlook statement, MLT's manager said the global economy is expected to continue on an expansionary path in 2022. However, the advent of the Omicron variant and an expected increase in interest rates in some advanced economies could temper this growth.

However, it added that the logistics sector has remained resilient as demand continues to benefit from structural trends such as e-commerce and supply chain diversification.

Ng Kiat, chief executive officer of MLT's manager, said: "Q3 was also a busy quarter as we scaled up MLT's regional network with the proposed acquisitions of 17 Grade-A logistics assets in China, Vietnam and Japan.

"With a combined value of S$1.4 billion, they will add 13 million square feet of modern warehouse space to our portfolio. Post-acquisitions, developed markets continue to form the majority of MLT's portfolio, accounting for approximately 70 per cent of assets under management."

Units of MLT closed on Friday at S$1.69 prior to the results announcement, down 1.7 per cent or S$0.03.