MLT posts lower Q4 DPU on higher fees and expenses

MAPLETREE Logistics Trust (MLT) on Friday reported a distribution per unit (DPU) of 1.8 Singapore cents for its fourth quarter ended March 31, 2016.

This was a 2.7 per cent drop from the 1.85 cents paid out a year ago.

Gross revenue rose 4.4 per cent to S$88.4 million, boosted by contribution from three properties acquired in Australia, South Korea and Vietnam in FY2016, as well as higher revenue from existing properties in Hong Kong and China.

There was also higher translated revenue from the stronger Japanese yen and Hong Kong dollar, it said.

Consequently, net property income rose 3.3 per cent to S$72.6 million.

But amount distributable to unitholders fell 2.4 per cent to S$44.8 million due to higher management fees, trust expenses, borrowing costs, absence of distribution from the divestment gain from 30 Woodlands Loop.

DPU also fell as a result of the enlarged issued unit base, due mainly to the distribution reinvestment plan.

The trust said: "FY15/16 was a challenging year. We faced significant headwinds in Singapore due to the conversions of single-user assets to multi-tenanted buildings amidst rising supply of warehouse space. The global economic slowdown also contributed to a difficult leasing environment."

MLT will pay the distribution on June 9; the books closure date is on May 10.