MLT's Q1 DPU up 1% to 2.045 Singapore cents

MAPLETREE Logistics Trust (MLT) has declared a distribution per unit (DPU) of 2.045 Singapore cents for its first quarter ended June 30, up 1 per cent from 2.025 cents in the year-ago period.

Distributable income grew 5.7 per cent to S$77.8 million, said the company in a release of its results after trading hours on Monday. Meanwhile, net property income went up 12 per cent to S$118.8 million, on the back of a 1.1 per cent decline in property expenses, mainly due to lower utilities cost, maintenance expenses and absence of expenses in relation to the properties divested last year, partly offset by expenses attributable to acquisitions.

Gross revenue went up 10.5 per cent to S$132.4 million, underpinned by higher revenue from existing properties, as well as contributions from accretive acquisitions completed in FY19/20.

Portfolio occupancy stood at 97.2 per cent as at June 30, while the weighted average lease expiry of the portfolio by net lettable area was unchanged at 4.3 years.

During the quarter, leases for approximately 362,126 square metres were successfully renewed or replaced, achieving a positive average rental reversion rate of around 1.9 per cent. This was mainly attributable to China, Hong Kong, Malaysia and Vietnam.

In its outlook, MLT's manager said that following the progressive easing of restrictions and as economies reopen, nearly all its tenants have resumed operations, except for a small number of mainly Singapore tenants representing 1.3 per cent of MLT's revenue base.

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It added that its diversified geographic presence and tenant trade sector mix continues to provide resilience to MLT's pan-Asia portfolio.

Ng Kiat, CEO of the manager said: "Covid-19 has accelerated several pre-existing structural trends, such as e-commerce growth and supply chain diversification, benefitting the logistics market in the Asia-Pacific. Underpinned by these trends, the logistics sector has continued to demonstrate resilience."

However, the manager noted that a prolonged Covid-19 situation and economic downturn may adversely affect demand for warehouse space.

It said that it will continue to be vigilant on maintaining a strong balance sheet and prudent cash flow management.

As at June 30, MLT had a gearing ratio of 39.6 per cent and an average debt duration of four years. Based on the available committed credit facilities on hand, MLT has more than sufficient liquidity to meet its maturing debt obligations in the coming 12 months, said the manager.

MLT will pay a distribution of 2.045 cents per unit on Sept 11 for the April 1, 2020 to June 30, 2020 period. The record date is July 28.  

MLT units closed flat at S$2.04 on Monday.