SINGAPORE (July 23): The manager of Mapletree Logistics Trust (MLT) has announced an available distribution per unit (DPU) of 1.957 cents for the 1Q19 ended June, up 3.7% from its 1Q18 DPU of 1.887 cents a year ago.
Gross revenue for 1Q19 grew 10.1% on-year to $105.4 million from $95.8 million previously, maily due to higher contributions from existing properties and acquisitions in Hong Kong completed in FY18.
Meanwhile, property expenses grew by 4.5% to $15.6 million from $15 million a year ago due to acquisitions costs as well as higher operation and maintenance expenses.
In all, net property income (NPI) grew by 11.1% to $89.8 million compared to $80.8 million a year ago.
As at end-June, portfolio occupancy rate stood at 95.7% compared to 96.6% a year ago.
The decline was attributed to a lower occupancy rate in China, after taking into account the trust’s recent acquisition of a 50% interest in 11 properties, some of which are newly completed such that several committed leases have yet to commence.
Including the committed leases, occupancy rate would have been 97.8% for China instead of 91%, and 97.1% for the MLT portfolio.
The manager notes that demand for prime logistics space in markets where MLT operates have remained stable, underpinned by domestic consumption and the growth of e-commerce.
Going forward, it expects its proposed acquisition of five modern, ramp-up logistics properties in Singapore to be accretive to distribution, while also strengthening MLT’s portfolio and competitive positioning in Singapore.
The latest 1Q DPU comprises an advanced distribution of 1.398 cents for April 1 to June 4 as well as a balance distribution of 0.559 cent for 5-30 June, after accounting for the partial distribution of gains from various divestments made in recent years.
The advance and balance distribution are to be paid out to unitholders on Aug 31 and Sept 3 this year, respectively.
At the same time, MLT’s manager has also announced the re-commencement of its distribution reinvestment plan (DRP), which involves issuing units in lieu of cash and will be applied to the balance distribution for 1Q19.
This is expected to provide unitholders with a cost-effective method of increasing their holding in MLT without having to incur transaction costs, while also helping to enlarge MLT’s capital base, strengthen MLT’s capital base, as well as strengthen its working capital reserves and improve the liquidity of units, says the manager.
Units in MLT closed flat at $1.28 on Monday.
