Mapletree Logistics Trust's DPU up 1% in Q3

MAPLETREE Logistics Trust's (MLT) distribution per unit rose 1 per cent to 2.065 Singapore cents for its third quarter ended Dec 31, 2020, on an enlarged unit base following its equity fundraising completed in Q3. This is up from 2.044 Singapore cents a year ago.

This sum comprises of advanced distribution of 0.623 Singapore cents for the period Oct 1-28, 2020 that was paid on Dec 4, 2020, and 1.442 Singapore cents for the balance distribution for the period Oct 29 to Dec 31, 2020, payable on March 15, 2021.

Gross revenue went up 15.5 per cent to S$139.9 million, mainly due to higher revenue from existing properties, contributions from accretive acquisitions completed in FY19/20 and FY20/21, as well as contribution from the completed redevelopment project in Shanghai, Ouluo Logistics Park Phase 2.

Net property income rose 14.9 per cent year-on-year to S$124.7 million, while amount distributable to unitholders grew 10.2 per cent year-on-year to S$84.4 million.

Portfolio occupancy stood at 97.1 per cent as at Dec 31, 2020, while the weighted average lease expiry by net lettable area of the portfolio is about 3.7 years. Excluding the recently acquired Higashi Hiroshima Centre in Japan which is 33 per cent occupied, portfolio occupancy would be 97.4 per cent.

In Q3, leases for approximately 266,483 square metres of space were successfully renewed or replaced, with an average rental reversion of about 1.6 per cent. This was mainly contributed by Hong Kong, China, Vietnam and Malaysia. Following the completion of acquisitions in the third quarter from China, Vietnam, Australia and Japan, MLT's portfolio comprised 156 properties with a value of S$10.2 billion as at Dec 31, 2020.

With the completion of an equity fundraising in Q3 which raised gross proceeds of S$644 million to partially finance acquisitions in China, Malaysia and Vietnam, MLT's total outstanding debt increased by S$212 million to S$3.8 billion. As such, MLT's aggregate leverage declined to 36.8 per cent as at Dec 31, 2020, from 39.5 per cent in the previous quarter.

The weighted average borrowing cost remained at 2.2 per cent per annum for the third quarter, while all debt due in the current financial year has been refinanced.

As at Dec 31, 2020, MLT has a gearing ratio of 36.8 per cent with an average debt duration of 3.8 years. Approximately 79 per cent of MLT's total debt has been hedged into fixed rates, while about 70 per cent of income stream for the next 12 months has been hedged into Singapore dollars.

In its outlook, the manager noted that while overall leasing demand for warehouse space in MLT's markets has stayed relatively resilient to-date, management is working with a few customers to support them.

Ng Kiat, CEO of MLT's manager, said: "Fortunately, most of our tenants were able to keep their operations stable. However we remain watchful, with the resurgence of virus infections causing disruptions across various cities."

She added that MLT will continue to build and strengthen its geographic network across the Asia-Pacific, to deliver long-term returns to unitholders.

MLT will pay a distribution of 1.442 Singapore cents per unit to unitholders on March 15, 2021 for the period from Oct 29, 2020, when new units were issued following the private placement launched on Oct 20, 2020, to Dec 31, 2020. The record date is Feb 2, 2021.

MLT's units remained flat at S$2.02 at the end of trading on Monday.