The manager of Mapletree Logistics Trust M44U has reported a distribution per unit (DPU) of 2.027 cents for 2QFY2025 ended Sept 30, down by 10.6% y-o-y from 2.268 cents in 2QFY2024.
The REIT’s distributable income stood at $102.3 million in 2QFY2025, down by 9.1% y-o-y.
This came on the back of higher borrowing costs, which saw a 8.2% y-o-y increase to $39.8 million. The REIT also experienced lower divestment gains at $6.1 million in 2QFY2025, as compared to $8.8 million in 2QFY2024.
Similarly, gross revenue for the quarter experienced a decline of 1.8% y-o-y to $183.3 million, while the REIT’s net property income fell by 2.1% y-o-y to $158.6 million.
According to the manager, this resulted from lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies against the Singapore dollar.
That said, the decline was partially mitigated by stronger performances in Singapore and Australia, and contributions from the REIT’s recent acquisitions.
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Meanwhile, the REIT’s portfolio occupancy saw an increase to 96.0% in 1QFY2025, largely due to backfilling of space in Hong Kong and Vietnam, while its weighted average lease expiry (WALE) stood at approximately 2.8 years.
The manager adds that the REIT achieved “positive rental reversions across most markets”, except for China which registered a negative rental reversion.
Jean Kam, CEO of the manager, says: “We are optimising our debt mix to proactively manage the impact of higher borrowing costs, a significant headwind which we continue to face. Over the quarter, we swapped a portion of USD, AUD and HKD loans into RMB, capitalising on China’s lower interest rates.”
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The REIT completed the divestments of two properties in Malaysia and Singapore, and announced the divestments of another three properties in Malaysia during 2QFY2025. The divestments have a total of $100 million in sale value and were completed at an average premium to valuation of 15%.
Kam adds: “With over $220 million in acquisitions and $130 million in divestments announced or completed year-to-date, we remain focused on the execution of our portfolio rejuvenation strategy, which will bolster our resilience over the long term.”
Shares in Mapletree Logistics Trust closed 1 cent lower, or down 0.7%, at $1.41 on Oct 22.
