SINGAPORE (Oct 23): The manager of Mapletree Logistics Trust (MLT) has announced a 1.5% rise in 2Q17/18 distribution per unit (DPU) ended Sept of 1.887 cents from the same quarter a year ago on higher revenue.
The latest quarter’s result brings DPU for 1H17/18 to 3.774 cents, representing a 1.7% increase from the 3.71 cents declared in 1H16/17.
Gross revenue for the quarter rose 2.3% on-year to $93.7 million from $91.6 million the year before. The manager says this reflected a stable performance across all markets, augmented by contributions from MLT’s acquisitions completions last year.
This was however partially offset by the absence of contribution from three divestments and one of two blocks under redevelopment in Ouluo Logistics Centre, China.
In line with the higher revenue, net property income (NPI) rose 2.5% to $78.7 million from $76.8 million previously.
Distributable to unitholders for 2Q17/18 grew 3.5% to $48.2 million from $46.6 million a year ago.
For leases renewed during the quarter, the rentals achieved were on average 1.4% higher than the preceding rental rates, attributable mainly to Hong Kong and China.
The trust also saw its portfolio occupancy improve to 95.8% from 95.5% in the previous quarter, due to higher higher occupancies in Singapore, Australia, South Korea, China and Vietnam.
The weighted average lease expiry (WALE) for the portfolio is roughly 3.8 years with around 49% of the leases having expiry dates in FY20/21 and beyond.
For the remainder of FY17/18, a balance of 9.4% of MLT’s leases by net lettable area (NLA) are due for renewal, of which 1.8% are leases for single-user assets and 7.6% are leases for multi-tenanted buildings.
MLT’s manager says the combined divestment gain of $5.4 million of MLT’s three divestments over 2Q17/18 – namely Zama Centre and Shiroishi Centre in Japan, as well as 4 Toh Tuck Link in Singapore – will be distributed to unitholders in the quarters to come.
The capital released will be channelled into investments of modern and higher-yielding assets to raise the overall quality of the trust’s portfolio, it adds.
Meanwhile, the manager says it will continue to pursue opportunities for strategic acquisitions and asset enhancements, and sees sustained leasing activities across its diversified markets with those Hong Kong, Japan and Australia expected to provide stable income streams.
In connection with the trust’s equity fund raising (EFR) exercise in Sept, MLT will pay out an advanced distribution of 1.706 cents per unit for those on the unitholder register as at Sept 21, for the period from Jul 1 – Sept 21, 2017, prior to the issuance of the new units.
The advanced distribution will be paid on Oct 27 while the next distribution will comprise MLT’s distributable income for Sept 22 to Dec 31.
Units in MLT closed 3 cents higher at $1.28.
