Mapletree Logistics Trust fiscal 3Q net property income rises nearly 15 percent

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Mapletree Logistics Trust reported on Monday net property income for the fiscal second quarter rose 14.6 percent on-year to S$90.19 million on organic growth in its existing portfolio and contributions from two recent acquisitions in Hong Kong.

That was partially offset by the absence of contributions from one divestment in the fiscal first quarter and four divestments in the previous fiscal year, reported the real estate investment trust. But results were also bolstered by the contribution from the June acquisition of a 50 percent interest in 11 properties in China.

Gross revenue for the quarter ended 30 September rose 13.8 percent on-year to S$106.65 million, the trust manager said in a filing to SGX after the market close on Monday.

The amount distributable to unitholders rose 32.5 percent on-year to S$63.90 million, including a partial distribution of the gains from divestments. The distribution per unit (DPU) for the quarter was 1.958 Singapore cents, up 3.8 percent on-year from 1.887 Singapore cents in the year-ago quarter, it said.

For the fiscal first half, MLT reported net property income rose 12.8 percent on-year to S$180.0 million, while gross revenue increased 11.9 percent on-year to S$212.09 million.

Overall portfolio occupancy rose to 97.6 percent as of 30 September from 95.7 percent in the previous quarter, it said, adding rental rates for leases that were renewed or replaced in the fiscal second quarter had an average positive reversion or around 1.3 percent, mainly on Hong Kong and Vietnam contributions.

Outlook

In its outlook, Mapletree Logistics Trust’s manager pointed to concerns over trade tensions, currency market volatility and rising interest rates. But it added that the assets in its portfolio are mainly used to support domestic consumption and leasing activities have remained stable.

“Over the past 12 months, we have gained significant momentum in our portfolio rejuvenation and recycling efforts, thereby increasing the proportion of modern-specs properties in MLT’s portfolio, especially in our core markets with growth potential,” Ng Kiat, CEO of Mapletree Logistics Trust’s manager, said in a statement.

MLT recently acquired five modern ramp-up warehouses in Singapore and divested a property with older warehouse specifications. In addition, the REIT’s redevelopment project completed in January, Mapletree Pioneer Logistics Hub, has had full occupancy since August.

Including the divestment of 531 Bukit Batok Street 23, which was completed earlier this month, the trust’s portfolio has 138 properties: 52 in Singapore; nine in Hong Kong;  20 in Japan; nine in Australia; 11 in South Korea; 14 in Malaysia; three in Vietnam and 20 in China, including the 50 percent interest in 11 there. The portfolio has a book value of S$7.6 billion, according to the company.

This article was originally published on 22 October 2018 at 18:23 SGT; it has since been updated. 

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