Mapletree Logistics Trust posts 3.5% rise in 1Q DPU to 2.025 cents despite enlarged base

Stanislaus Jude Chan

SINGAPORE (July 22): The manager of Mapletree Logistics Trust (MLT) has declared distribution per unit (DPU) of 2.025 cents for the 1Q19/20 ended June, some 3.5% higher than DPU of 1.957 cents a year ago.

The higher DPU comes despite an enlarged unit base. The total number of issued units rose to 3.64 billion units in 1Q19/20, 12.1% higher compared to 3.24 billion units in 1Q18/19.

Amount distributable to unitholders grew 20.8% to $73.6 million in 1Q19/20, from $60.9 million a year ago.

1Q19/20 revenue increased by 13.6% to $119.8 million, from $105.4 million a year ago.

The revenue growth was mainly contributed from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1 in 2Q18/19 and acquisitions in Singapore, Australia, South Korea and Vietnam completed in FY18/19.

Property expenses fell by 12.5% during the quarter to $13.7 million, from $15.6 million a year ago.

The decline was mainly due to lower land rent with the adoption of a new accounting standard.

Consequently, net property income (NPI) rose 18.2% to $106.1 million, from $89.8 million a year ago.

As at end June, cash and cash equivalents stood at $118.9 million.

Following the divestment of five properties in Japan in April this year, MLT’s portfolio now comprises 137 properties.

As at end June, the total value of assets under management stood at $7.9 billion.

The weighted average lease expiry (WALE) of the portfolio by net lettable area was extended to 4.8 years in 1Q19/20, compared to 3.8 years in the prior quarter.

This was mainly due to the successful renewal of two long-term leases in Singapore.

Portfolio occupancy dipped by 0.3 percentage points to 97.6% as at June 30, 2019, due to slightly lower occupancy rates in Singapore, Hong Kong and South Korea.

“We have achieved another set of stable performance underpinned by our focus on proactive lease management and contributions from an enlarged portfolio,” says Ng Kiat, chief executive officer of the manager.

“Amidst growing economic uncertainties, we will remain disciplined on driving stability in the portfolio while maintaining a firm focus on rejuvenation to strengthen MLT’s resilience,” she adds.

Looking ahead, the manager says customers have become more cautious on renewals and capacity expansion, despite overall leasing demand for warehouse space remaining relatively resilient so far.

Units of MLT closed flat at $1.61 on Monday.