Mapletree Logistics Trust (MLT) has reported distribution per unit (DPU) of 2.173 cents for its 2QFY2021/22 ended September, 5.7% higher y-o-y.
This follows a higher distributable income of $93.3 million recorded for the period, an increase of 19.2% y-o-y.
Aside from recording a 25.2% y-o-y growth in gross revenue to $165.1 million, MLT also posted 21.5% higher net property income to $144.4 million.
The growth was driven by contributions from accretive acquisitions completed in FY2020/21, higher revenue from existing properties and higher occupancy from Mapletree Ouluo Logistics Park Phase 2, which recently completed its redevelopment.
See: Mapletree Logistics Trust posts 5.7% growth in 2QFY21/22 DPU of 2.173 cents
The overall growth was moderated by a depreciation in the Hong Kong dollar and Japanese yen, which was partially offset by a stronger renminbi.
Property expenses increased by 58.6% to $20.6 million, mainly due to the accretive acquisitions. Funding for the acquisitions also involved incremental borrowings, which increased the borrowings cost by 21.7% to $25 million. This was partially offset by lower interest costs arising from lower average interest rates.
Total debt outstanding increased by $4 million, mainly due to higher net translated foreign currency loans. The REIT's aggregate leverage ratio stood steady at 38.2%, while interest rate remained at 2.2% per annum.
MLT started and ended 2QFY2021/22 with 163 properties and assets under management of $10.8 billion.
Portfolio occupancy remained at 97.8% due to higher occupancy in Singapore and Japan, and lower occupancy in China and Hong Kong.
The weighted average lease expiry for the portfolio is approximately 3.7 years, with portfolio occupancy remaining stable at 97.8%.
The portfolio achieved a positive average rental reversion of approximately 2.4%, contributed by renewal or replacement leases from across almost all of MLT’s markets.
“In line with our strategy to strengthen our regional footprint, we have recently announced the proposed acquisitions of three modern logistics assets in Australia, Malaysia and South Korea,” says Ng Kiat, CEO of the manager. “We will continue to focus on building up a quality portfolio and scaling up our network presence to capture opportunities in the logistics market.”
The company’s proposed acquisition in Yeoju, South Korea is for a freehold modern ramp-up logistics facility for 135 billion won. MLT had also announced the acquisitions of a A$42.8 million cold storage facility in Melbourne, Australia and an RM404.8 million Mapletree Logistics Hub in Tanjung Pelepas, Malaysia.
With a combined value of approximately $326.8 million, the acquisitions will add 219,000 sq m of modern warehouse space to MLT’s portfolio.
As the logistics sector remains open for business across MLT’s markets, its tenants continue to operate with minimal disruptions to their operations. When needed, the REIT says its manager will continue working closely with its tenants to provide targeted support.
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The manager will also remain focused on optimising yield from the existing portfolio, while pursuing strategic investment opportunities that deliver long-term value. This will be supported by a prudent capital management approach to maintain a strong balance sheet with diversified funding sources.
Unitholders can expect to receive their distributions on Dec 14.
Units in MLT closed 0.5% higher at $1.99 on Oct 25.
Photo: MLT
