The manager of Mapletree Logistics Trust (MLT) has announced a distribution per unit (DPU) of 2.055 cents for the 2QFY2020/2021 ended September, some 1.5% higher than a year ago.
This quarter’s result brings DPU for 1HFY2020/2021 to 4.1 cents, representing a 1.2% rise from the 4.05 cents posted in 1HFY2019/2020.
The REIT’s amount distributable to unitholders for the quarter grew 6.2% y-o-y to $78.3 million across 6.5 million units, compared to the 5.4 million units the year before.
For the 1HFY2020/2021, MLT’s distributable income rose 6.0% y-o-y to $156.1 million.
Gross revenue for 2QFY2020/2021 increased by 8.3% y-o-y to $131.9 million. This was mainly attributable to the higher revenue from existing projects, contributions from accretive acquisitions completed in FY2019/2020, as well as initial contribution from Ouluo Logistics Park Phase 2, which was recently completed in Shanghai, China.
The overall revenue growth was partly offset by rental rebates to tenants who were impacted by Covid-19, as well as the absence of contribution from a property divested in FY2019/2020.
Property expenses increased 3.0% y-o-y mainly due to acquisitions completed in 2HFY2019/2020, and partly offset by lower utilities cost, maintenance expenses and absence of expenses in relation to the divestment in FY2019/2020.
Accordingly, net property income (NPI) increased by 8.9% y-o-y to $118.9 million.
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In 2QFY2020/2021, MLT successfully renewed 93% of expiring leases, or 244,000 sqm out of 263,000 sqm of space.
The weighted average lease expiry (WALE) for the portfolio is around 4.2 years with 45% of the leases expiring in FY2023/2024 and beyond.
As at Sept 30, portfolio occupancy stood at 97.5%, 0.3 percentage points higher than the 97.2% reported in the previous quarter.
The REIT says its tenants “remain cautious on expansion” and are slower to commit due to the ongoing economic uncertainties. All of its tenants have resumed operations save for a few in Singapore, which represents about 0.3% of its revenue base.
The manager says it will “remain focused on proactive asset management and strategic acquisition opportunities with a view to provide stable long-term returns for [its] unitholders”, adding that it will remain prudent on cash flow management.
As at Sept 30, cash and cash equivalents stood at $184.2 million.
“Fortunately the logistics sector is less severely affected in this pandemic. With MLT’s extensive network of properties in close proximity to growing domestic consumption hubs, we have managed to maintain a steady performance. We will continue to deepen our network effect in Asia Pacific and remain prudent in maintaining a strong balance sheet amidst these uncertain times,” says Ng Kiat, CEO of the manager.
Units in MLT closed 1 cent higher or 0.5% up at $2.08 on Oct 19.
