Mapletree Logistics Trust Q4 DPU up 5.5% to 2.161 Singapore cts

MAPLETREE Logistics Trust (MLT) on Wednesday posted a distribution per unit (DPU) of 2.161 Singapore cents for the three months ended March 31, 2021, up 5.5 per cent from the year-ago period.

In a bourse filing after trading hours, the real estate investment trust (Reit) reported that the amount distributable to unitholders for the quarter rose 18.9 per cent year on year to S$92.6 million.

This brings DPU for FY 20/21 to 8.326 Singapore cents on an enlarged unit base, up 2.3 per cent year-on-year. Amount distributable to unitholders for the full year rose 10.4 per cent to S$333.1 million.

Net property income for the quarter rose 19.1 per cent to S$136.7 million; gross revenue was up 22.6 per cent to S$157 million.

MLT attributed the improved performance to higher revenue from existing properties, contributions from accretive acquisitions completed in FY19/20 and FY20/21, as well as contribution from a completed redevelopment project in Shanghai, Ouluo Logistics Park Phase 2.

However, overall growth was partly offset by rental rebates granted to eligible tenants who were affected by the Covid-19 pandemic, as well as the recognition of allowance for doubtful receivables.

Portfolio occupancy improved from 97.1 per cent in the last quarter to 97.5 per cent, due to higher occupancies in Hong Kong, South Korea and China. The weighted average lease expiry by net lettable area of the portfolio is 3.6 years.

In the fourth quarter, leases for approximately 241,700 square metres of space were renewed or replaced, with an average rental reversion rate of 2.4 per cent. This was contributed mainly by Japan, Vietnam, Hong Kong and Malaysia.

During the year, MLT completed acquisitions in China, Vietnam, Korea, Japan, Australia and India, incurring capital expenditure on redevelopment and other building improvements totalling S$1.6 billion.

In addition to bank loans, these investments were funded by proceeds from an equity fundraising in Q3 of S$644 million, consideration units in MLT of S$300 million, and issuance of 9.5 billion yen (about S$117 million) medium-term notes.

As at March 31, 2021, MLT's total outstanding debt stood at S$4.23 billion, translating to a gearing ratio of 38.4 per cent. Its average debt duration is 3.8 years. The weighted average borrowing cost for Q4 FY20/21 stood at 2.2 per cent per annum.

Approximately 75 per cent of the Reit's total debt has been hedged into fixed rates, while about 79 per cent of income stream for the next 12 months has been hedged into Singapore dollars.

Debt due in the coming financial year amounts to S$161 million, or 4 per cent of total debt. MLT said the available committed credit facilities of about S$668 million gives it more than sufficient bandwidth to meet maturing debt obligations.

The resurgence of Covid-19 infections and ongoing geopolitical and trade tensions may hamper economic recovery, but overall leasing demand in MLT's markets is expected to remain resilient, the Reit manager said.

Ng Kiat, chief executive officer of MLT Management, said: "We had a busy year scaling up our regional network and competitive position, with the addition of 18 well-located modern logistics assets spanning over 10 million square feet across six countries."

While there remains uncertainty over the pace of economic recovery, MLT's portfolio will position it well to capitalise on favourable market trends, she added.

MLT units closed at S$1.96 on Wednesday, down 1.01 per cent or S$0.02.