The manager of Mapletree Logistics Trust M44U (MLT) announced that its distribution per unit (DPU) for 3QFY2024 ended Dec 31, 2023, came in at 2.253 cents, 1.2% higher than 2.227 cents the same period a year ago.
Including $12.4 million of divestment gain, the amount distributable to unitholders increased 4.8% y-o-y to $112.2 million. The lesser increase in DPU was due to an enlarged unit base.
Gross revenue for the third quarter increased by 2.1% y-o-y to $184.0 million from $180.2 million, while net property income (NPI) rose 1.5% to $159.5 million from $157.2 million last year.
The increase in revenue and NPI were largely due to higher contribution from existing properties in Singapore and contributions from the acquisitions in Japan, South Korea and Australia completed in 1QFY2024. Growth was partly offset by weaker performance in China and absence of revenue from properties that were divested or undergoing redevelopment.
The depreciation of various currencies against the Singapore Dollar, primarily Chinese Yuan, Japanese Yen, Hong Kong Dollar, Malaysian Ringgit and Australian Dollar, also continued to weigh on growth. On a constant currency basis, revenue and NPI would have grown by 4.8% and 4.1% y-o-y respectively.
At the distribution level, the impact of weakening currencies is mitigated through the use of foreign currency forward contracts to hedge the income from overseas assets.
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For 9MFY2024, gross revenue grew 0.2% y-o-y to $552.9 million, while NPI declined by 0.2% to $479.6 million. Property expenses increased by 2.8% on the back of the acquisitions completed in 1QFY2024, higher property tax and maintenance expenses. Including divestment gain of $29.6 million, the amount distributable to unitholders rose 4.0% to $336.7 million, and DPU was 0.7% higher at 6.792 cents.
Ng Kiat, CEO of the manager says: “MLT has delivered another set of resilient results, underpinned by our diversified portfolio. However, weaker regional currencies, high borrowing costs and a challenging leasing environment in China continue to pose headwinds to our financial performance.”
“We remain laser-focused on rejuvenating our portfolio towards modern, high-specs assets, and continue to implement proactive risk management strategies to navigate the uncertain economic landscape.”
Units in MLT closed 1.24% higher on Jan 24 at $1.63.
