MLT Q1 DPU rises 5.7% amid higher gross revenue

THE distribution per unit (DPU) of Mapletree Logistics Trust (MLT) for the first quarter ended June 30 grew 5.7 per cent to 2.161 Singapore cents amid higher gross revenue during the period.

In an exchange filing on Monday, the manager said gross revenue for the first quarter climbed 23.7 per cent year on year to S$163.7 million, driven by higher revenue from existing properties, contributions from accretive acquisitions completed during the previous financial year, and the completed redevelopment of Mapletree Ouluo Logistics Park Phase 2.

Net property income for the first quarter rose 21.3 per cent year on year to S$144.2 million.

The amount distributable to unitholders rose 19.1 per cent year on year to S$92.7 million, although this amount was spread across an enlarged unit base due to equity fund raising completed in the last financial year.

The manager noted that the amount distributable to unitholders in the prior year's quarter had included divestment gains of S$4.7 million, which had tapered to S$1.8 million in the latest quarter.

Excluding the divestment gains, adjusted DPU for the latest quarter would have been 10.3 per cent higher year on year, the manager said.

Ng Kiat, chief executive of the trust's manager, said: "MLT has continued to achieve a steady performance in Q1, underpinned by a diversified portfolio and the resilience of the logistics market."

She added: "The resurgence of infections in the region is a concern, but fortunately, most of our tenants were able to keep their operations stable. We will remain focused on keeping portfolio stability while continuing to strengthen our geographic network across the Asia-Pacific, to deliver long term returns to unitholders."

MLT's portfolio occupancy improved to 97.8 per cent as of end-June, up from 97.5 per cent in the previous quarter.

The weighted average lease expiry (WALE) of the portfolio by net lettable area was stable at 3.8 years.

MLT's manager noted that leases for around 391,517 square meters were successfully renewed or replaced during the quarter, achieving a positive rental reversion rate of around 2.2 per cent.

This was mainly attributable to Vietnam, Hong Kong and Singapore.

MLT's manager added that the global economy is gradually recovering, aided by vaccination in developed markets, but Covid-19 mutations could slow the pace of recovery, and geopolitical tensions remain a risk.

Even so, it said that demand for warehouse space in its markets has "remained resilient to date, with stable occupancy and rental rates".

The manager added that it continues to focus on maintaining stable occupancy rates, prioritising tenant retention and working closely with tenants to navigate through this uncertain period.

Total debt outstanding decreased by S$38 million to S$4.19 billion during the quarter, mainly due to lower net translated foreign currency loans.

As of end-June, MLT had a gearing ratio of 38.2 per cent, and an average debt duration of 3.7 years.

Total assets at quarter-end stood at S$11.15 billion, with total liabilities of S$5.06 billion. Net asset value per unit stood at S$1.32, down from S$1.33 in the previous quarter.

MLT will pay the DPU of 2.161 cents on Sept 7. The record date is July 28.

MLT units closed at S$2.10 on Monday, down 2 Singapore cents or 0.9 per cent.