Mapletree Logistics Trust reports fiscal 2Q net property income rose 21 percent

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Mapletree Logistics Trust reported Monday its fiscal second quarter net property income rose 21 percent on-year to S$109.13 million, coming in slightly ahead of a forecast from Daiwa.

Gross revenue for the quarter ended 30 September increased 14.2 percent on-year to S$121.75 million, the trust said in a filing to SGX.

The distribution per unit (DPU) for the quarter was 2.025 Singapore cents, up 3.4 percent from 1.958 Singapore cents in the year-ago quarter, the filing said.

Daiwa had forecast net property income of S$106.1 million on gross revenue of S$123.5 million, with a DPU of 2.02 Singapore cents.

“The improvement in results reflects stable performance across all markets, augmented by higher contribution from Hong Kong SAR as well as contributions from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1 and accretive acquisitions” in Singapore, Australia, South Korea and Vietnam in the previous fiscal year, the trust said.

It added growth was partially offset by the divestment of five properties in Japan in the fiscal first quarter and on the impact of a weaker Australian dollar, South Korean won and Chinese yuan.

Mapletree Logistics Trust had 137 properties for the full quarter, but in the year-ago period, it began the quarter with 134 properties and ended with 139 properties, the filing said.

During the quarter, leases for around 135,900 square meters of space were renewed or replaced out of a total 143,700 square meters due for expiry, for a success rate of 95 percent, the trust said, adding it had positive rental reversion of around 1.8 percent for the quarter.

Portfolio occupancy was at 97.5 percent at end-September, compared with 97.6 percent at the end of the first quarter, on slightly lower occupancy rates in China and South Korea, partly offset by a higher occupancy rate in Hong Kong, the filing said.

For the fiscal first half, Mapletree Logistics Trust reported net property income of S$215.25 million, up 19.6 percent, on gross revenue of S$241.56 million, up 13.9 percent on-year. The DPU for the first half was 4.05 Singapore cents, up 3.4 percent from 3.915 Singapore cents in the year-ago period, the trust said.

In its outlook, the trust was cautious.

“The global economic outlook continues to weaken, amidst trade tensions and a slowdown in most major economies. In MLT’s core markets, Singapore and Hong Kong SAR, customers are cautious and slower to commit, with shorter lease signings and lower positive rental reversions,” Mapletree Logistics Trust said.

“The manager continues to focus on proactive asset management and strategic acquisition opportunities with a view to provide stable returns for unitholders,” it added.

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