SINGAPORE (April 27): The manager of Mapletree Logistics Trust (MLT) has declared a distribution per unit (DPU) of 1.86 cents for 4Q16/17, 3.3% higher from 1.80% in the same quarter a year ago.
This brings DPU for the full financial year to 7.44 cents, up 0.8% from 7.38 cents in FY15/16.
Gross revenue for the quarter grew 9% on-year to $96.5 million.
This was mainly attributed to contribution from four acquisitions in Australia, Malaysia and Vietnam completed during the financial year; the completion of Mapletree Logistics Hub – Toh Guan’s redevelopment and a extension building in Moriya Centre in Japan; higher revenue from existing properties in Hong Kong; as well as higher translated revenue from the stronger Japanese yen and Hong Kong dollar.
The higher revenue was offset in part by certain properties in Singapore, in addition to negative rental reversion for a lease extension in Korea as well as the impact of a weaker Chinese renminbi.
According to MLT’s manager, the impact of currency movements to the trust’s distribution is mitigated as its income streams are substantially hedged.
Property expenses increased by 2.6% to $16.2 million from $15.8 million in the previous year, as MLT’s enlarged portfolio was partially offset by lower facility management costs.
As a result, net property income (NPI) for 4Q16/17 grew 10.5% on-year to $80.3 million compared to $72.6 million in 4Q15/16.
Portfolio occupancy ended the year at 96.3%, up slightly from 96.2% in the previous year.
The weighted average lease term to expiry (WALE) by net lettable area is approximately four years, with around 46% of the leases expiring after three years and beyond.
Ng Kiat, CEO of the manager, says she finds the trust’s 4Q DPU and resilient performance over the financial year encouraging in spite of a challenging leasing environment.
“Looking ahead, we will continue to improve the quality of the portfolio and drive marketing and asset management to deliver sustainable unitholders’ returns,” she adds.
Units of MLT closed 0.44% higher at $1.14 on Thursday.
