The manager of Mapletree Logistics Trust (MLT) has reported distribution per unit (DPU) of 2.065 cents for the 3QFY2020/2021 ended December over an enlarged unit base of 4.28 billion following the equity fund raising completed during the quarter.
The quarter’s DPU represents a slight growth of 1.0% from DPU of 2.044 cents in 3QFY2019/2020.
Amount distributable to unitholders for the quarter rose 10.2% to $84.4 million from $76.6 million previously, as it includes the partial distribution of the gains from the divestments of Mapletree Waigaoqiao Logistics Park. The sum also includes the gains from the divestments of the five properties in Japan as well as from 7 Tai Seng Drive.
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3QFY2020/2021 gross revenue grew 15.5% y-o-y to $139.9 million mainly due to higher revenue across the REIT’s existing properties. The higher gross revenue was also attributable to contributions from acquisitions completed in FY2019/2020 and FY2020/2021, as well as contribution from the completed redevelopment project in Shanghai, Ouluo Logistics Park Phase 2.
Growth was partly offset by rental rebates granted to eligible tenants who were impacted by Covid-19, as well as the absence of contribution from one of MLT’s properties that was divested in FY2019/2020.
Property expenses increased by 20.3% y-o-y to $15.1 million due to the acquisitions completed in FY2019/2020 and FY2020/2021, and was offset by lower maintenance expenses and absence of expenses in relation to divested property completed in FY2019/2020.
Correspondingly, net property income (NPI) increased by 14.9% y-o-y to $124.7 million.
For the 9MFY2020/2021, DPU gained 1.2% y-o-y to 6.165 cents on an enlarged unit base. Amount distributable to unitholders for the same period grew 7.4% y-o-y to $240.5 million.
As at Dec 31, 2020, MLT’s portfolio occupancy stood at 97.1% with a weighted average lease expiry (WALE) of 3.7 years by net lettable area (NLA).
Cash and cash equivalents for the period stood at $275.3 million.
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Excluding the recently acquired Higashi Hiroshima Centre in Japan which is 33% occupied, portfolio occupancy would be 97.4%.
During the quarter, leases for some 266,483 sqm were renewed or replaced, which brings MLT’s average rental reversion to around 1.6%.
MLTs aggregate leverage declined to 36.8% as at Dec 31, 2020, from 39.5% in 2QFY2020/2021 following its equity fund raising, which raised gross proceeds of some $644 million.
MLT now owns 156 properties with a value of $10.2 billion as at Dec 31, 2020, following its acquisitions in China, Vietnam, Australia and Japan.
Looking ahead, the manager says it will continue to keep its focus on proactive asset management as well as maintaining stable occupancies and a stable balance sheet.
MLT says it will pay a distribution of 1.442 cents to unitholders on March 15 for the period from Oct 29, 2020, when new units were issued under the private placement launched on Oct 20, 2020, to Dec 31, 2020.
“Our 3Q results once again demonstrate the continued resilience of our tenant base and a geographically diversified portfolio. Fortunately, most of our tenants were able to keep their operations stable,” says Ng Kiat, CEO of the manager.
“However we remain watchful, with the resurgence of virus infections causing disruptions across various cities. We will continue to build and strengthen our geographic network across Asia Pacific, to deliver long term returns to unitholders,” she adds.
Units in MLT closed flat at $2.02 on Jan 25.
