SINGAPORE (July 20): The manager of Mapletree Logistics Trust (MLT) announced that its 1QFY20/21 DPU has increased by 1.0% to 2.045 cents, as compared to 2.025 cents in 1QFY19/20.
Amount distributable to unitholders for the first quarter ended March was 5.7% higher at $77.8 million from $73.6 mill a year ago.
As at June 2020, MLT’s portfolio consists of 145 properties with a total asset under management (AUM) value of $8.9 billion. Portfolio occupancy stood at 97.2%, while weighted average lease expiry (WALE) of the portfolio (by NLA) is unchanged at 4.3 years.
Gross revenue for the quarter increased by 10.5% to $132.4 million from $119.8 million in the previous year.
The revenue growth was mainly due to higher revenue from MLT’s existing properties and acquisitions in Malaysia, Vietnam, South Korea and Japan completed in FY19/20. The growth in revenue was partly offset by rental rebates granted to eligible tenants impacted by the Covid-19 and absence of revenue contribution from six divested properties completed in FY19/20.
Impact of currency fluctuations is mitigated through the use of foreign currency forward contracts to hedge the foreign-sourced income distributions.
As property expenses saw a slight 1.1% y-o-y drop to $113.5 million, net property income for 1QFY20/21 came in at $118.8 million, 12.0% higher than $106.1 million in 1QFY19/20.
Due to the absence of divestment gain ($34.4 million in 1QFY19/20), profit for the period was $74.8 million, 9.9% lower than $83.1 million last year.
As at end-March, MLT’s cash and cash equivalents stood at $239.1 million.
Following the progressive easing of restrictions and as economies reopen, all of MLT’s tenants have resumed operations except for a small number of tenants representing 1.3% of MLT’s revenue base which are mainly from Singapore.
Overall leasing demand for warehouse space has stayed relatively resilient, says the trust in its results report. Its diversified geographic presence and tenant trade sector mix continues to provide resilience to MLT’s pan-Asia portfolio.
Ng Kiat, CEO of the manager says, “Covid-19 has accelerated several pre-existing structural trends, such as e-commerce growth and supply chain diversification, benefitting the logistics market in Asia Pacific. Underpinned by these trends, the logistics sector has continued to demonstrate resilience. With a quality portfolio and strong regional network, MLT remains well-positioned to navigate the current challenges as well as capture opportunities in the market place.”
Nonetheless, the manager said that it remains watchful of the evolving environment, as a prolonged Covid-19 situation and economic downturn may adversely affect demand for warehouse space.
Units in MLT closed at $2.04 on Monday.
