Mapletree Logistics Trust recorded a 17.2% y-o-y rise in distributable income to $108.6 million for the three months to June 30, the REIT’s 1Q2023. Distribution per unit (DPU) rose 5% to 2.268 cents on an enlarged unit base following the placement in the last quarter of 2021.
Revenue in the quarter rose 14.6% y-o-y to $187.7 million. Property expenses increased by 24.8% to $24.4 million due to the enlarged portfolio and higher property and land tax. Accordingly, net property income (NPI) in 1QFY2023 increased by 13.2% y-o-y to $163.2 million.
During the quarter, MLT completed the acquisitions of Mapletree (Yuyao) Logistics Park in China and Baeksa Logistics Centre in South Korea taking MLT’s property portfolio to $13 billion as at June 30. Net asset value fell 1 cent q-o-q to $1.47 as at June 30.
During the Apr-June quarter, portfolio occupancy was stable at 96.8% (compared to 96.9% in the previous quarter) while leases renewed/replaced during the quarter achieved a positive rental reversion of approximately 3.4%. The manager has embarked on the redevelopment of 51 Benoi Road in Singapore, as well as the potential amalgamation of Subang 3 and 4 in Malaysia with the two land parcels acquired recently. The Benoi redevelopment project is estimated to cost approximately $197 million and is expected to be completed by first quarter of 2025. The Subang redevelopment costs is expected at around $173 million and project completion is targeted in 2027.
Gearing inched up to 37.3% due to acquisitions announced in the last quarter of CY2021, and completed in 1QCY2022. As at June 30, debt hedged on fixed rates stood at 80% while 73% of MLT’s income stream for the next 12 months has been hedged into Singapore dollars.
During the quarter to June 30, MLT’s borrowing costs rose by 11% y-o-y due to incremental borrowings to fund acqiusitions, and higher average interest rates from recent global interest rate hikes. According to MLT’s manager, every potential 25 bps increase in base rates may result in a decrease of 0.01 cent in DPU.
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MLT closed at $1.71 on July 21, translating into an annualised yield of 5.3%.
