Mapletree Logistics Trust's Q3 DPU up despite enlarged unit base

Singapore

MAPLETREE Logistics Trust (MLT) recorded a distribution per unit (DPU) of 2.044 Singapore cents on an enlarged unit base for the third quarter ended Dec 31, up from a DPU of 2.002 cents a year ago.

Chief executive officer of the trust manager, Ng Kiat, noted that an equity raising exercise in the third quarter had a temporary drag on DPU as the full contribution from the newly acquired seven properties will only kick in from the fourth quarter.

"Excluding this impact, 3Q DPU would have been 2.066 cents," Ms Ng said.

The manager raised gross proceeds of about S$250 million in October 2019 through a private placement to partly finance the acquisition of seven logistics properties.

Income available for distribution climbed 6.5 per cent year-on-year to S$76.6 million while net property income increased 3.9 per cent to S$108.6 million.

Gross revenue edged up by 0.3 per cent to S$121.1 million, mainly due to higher revenue from existing properties and acquisitions in Australia, South Korea and Vietnam. This was partly offset by the absence of revenue from the divestment of five properties in Japan in the first quarter, and the impact of weaker currencies.

Property expenses fell 22.8 per cent to S$12.6 million mainly due to lower land rent recognised with the adoption of new accounting standards, and divestments completed in the first quarter.

Portfolio occupancy expanded to 97.7 per cent from 97.5 per cent in the previous quarter due to higher occupancy in Singapore, partly offset by lower occupancies in South Korea and China. Leases for 244,695 square metres of space were renewed or replaced in Q3, out of a total of 252,423 sq m due for expiry.

Occupancy for the logistics facilities has stayed relatively resilient at 97.7 per cent, while rental rates have been stable to-date, said MLT. The manager intends to continue focusing on tenant retention and actively managing leases due for expiry.

Aggregate leverage rose to 37.5 per cent as at Dec 31. Since then, it has been reduced to 37.1 per cent following the repayment of loans from net divestment proceeds.

MLT's debt maturity profile has an average duration of 3.9 years after refinancing post quarter-end. Of MLT's total debt, 84 per cent has been hedged into fixed rates while 78 per cent of income stream for the next 12 months has been hedged.

The acquisition of seven logistics properties was completed in Q3 and they will make their full contribution to revenue in the coming quarter. Coupled with the divestment of one property in China, MLT's portfolio comprises 143 properties, while total value of assets under management was S$8.3 billion as at Dec 31.

An advanced payout for the period from Oct 1 to Oct 31 amounting to 0.68 cent a unit was paid on Dec 6. The remaining 1.364 cents is payable on March 6, for which books closure date is Jan 29.

The counter closed flat at S$1.81 on Monday before the results were announced.