Mapletree Logistics Trust reports fiscal 1Q net property income rose 18 percent

Mapletree Logistics Trust Monday reported its fiscal first-quarter net property income increased 18.2 percent on-year to S$106.13 million on contributions from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1 and acquisitions.

The increase was partially offset by the divestment of five Japan properties in April and two Singapore properties in the previous fiscal year, the trust said. It also pointed to the impact of a weaker Australian dollar, Chinese yuan and South Korean won.

Gross revenue for the quarter ended 30 June was S$119.81 million, up 13.6 percent on-year, the trust said in a filing to SGX.

The distribution per unit (DPU) was 2.025 Singapore cents for the quarter, up 3.5 percent from 1.957 Singapore cents in the year-ago period, MLT said.

Daiwa had forecast net property income of S$106.4 million on revenue of S$122.9 million, with a DPU of 2.03 Singapore cents.

Property expenses fell 12.5 percent on-year to S$13.68 million due to lower land rent on accounting changes, the filing said.

Portfolio occupancy was at 97.6 percent at end-June, down from 98.0 percent at the end of the March, the trust said.

“This reflects slightly lower occupancy rates in Singapore, Hong Kong and South Korea, which were partially offset by higher occupancy in China,” it added.

In its outlook, the trust was cautious.

“Global economic growth softened further in the first half of the year as trade and manufacturing decelerated. In MLT’s markets, overall leasing demand for warehouse space has been relatively resilient to-date. However, customers have become more cautious on renewals and capacity expansion,” MLT said.

“The manager remains watchful of the evolving environment and keeps its focus on proactive lease management to maintain stable occupancies,” it added.

Mapletree Logistics Trust’s portfolio had 137 properties at end-June, the filing said.

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