Mapletree Logistics Trust (MLT) has posted distribution per unit (DPU) of 2.211 cents for 4QFY2024 ended March 31, 2.5% lower y-o-y. This brings full-year DPU to 9.003 cents, 0.1% lower y-o-y.
Gross revenue and net property income (NPI) for 4QFY2024 grew 1.2% and 0.6% y-o-y to $181.0 million and $155.3 million respectively. On a constant currency basis, revenue and NPI would have grown by 3.6% and 3.0% respectively, says the manager on April 29.
Full-year gross revenue grew 0.4% y-o-y, while NPI remained flat y-o-y. On a constant currency basis, FY2024 revenue and NPI would have grown by 4.1% and 3.6% y-o-y respectively.
Taking into account higher borrowing costs and $41.6 million of divestment gain, the amount distributable to unitholders rose 3.3% y-o-y to $447.1 million, while DPU was 0.1% lower at 9.003 cents on an enlarged unit base, says the manager.
As at March 31, MLT owned 187 properties with an aggregate portfolio property valuation of $13.2 billion, an increase of S$0.4 billion or 3.2% y-o-y. The increase was mainly due to acquisitions of nine properties in FY2024, and capital expenditure on existing assets and a property under development in Singapore.
This was partly offset by the divestment of seven properties during the year, currency translation loss of $470.9 million and $1.8 million net fair value loss on investment properties.
See also: Mapletree Logistics Trust's 4QFY2023 DPU unchanged, FY2023 DPU up 2.5%
Over FY2024, MLT has completed and/or announced the acquisitions of 12 assets with an aggregate value of over S$1.1 billion.
Portfolio occupancy was maintained at 96.0% while the weighted average lease expiry for the portfolio stood at approximately 3.0 years.
The portfolio achieved positive rental reversions across the markets ranging from 2.6% in South Korea to 11.1% in Singapore, except for China which registered negative rental reversion of -10.0%.
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The weighted average rental reversion for leases renewed during 4QFY2023, excluding China was 7.1%; including China, it was 2.9%.
As at March 31, MLT’s gearing was 38.9%, with an average debt duration of 3.8 years. Debt due in FY2025 amounts to $275 million, or 5% of total debt. Based on the available committed credit facilities of about $950 million, MLT has “more than sufficient” facilities to meet its maturing debt obligations in the coming financial year, says the manager.
The weighted average borrowing cost for 4Q2024 rose to 2.7% per annum, as compared to 2.5% in the prior quarter. To mitigate the impact of rising interest rates and currency volatility on MLT’s distributions, approximately 84% of total debt has been hedged into fixed rates and around 78% of income stream for the next 12 months has been hedged into the Singapore dollar.
In March, MLT issued its maiden S75 million green bond under its Green Finance Framework. With the proceeds used to refinance eligible green properties, the green bond serves to diversify MLT’s investor base and further integrate sustainability into its financing strategy. Separately, Fitch affirmed MLT’s credit rating at BBB+ with a Stable Outlook on March 27.
Slowing growth, ongoing geopolitical tensions and a higher for longer interest rate environment continue to pose headwinds to MLT, says the manager. “Leasing activity in the majority of MLT’s markets is likely to remain stable, supported by steady demand for its portfolio of modern, well-located assets. In China, the leasing environment continues to be challenging amid uncertainty over its economic recovery, and negative rental reversions are expected to persist.”
Ng Kiat, chief executive officer of the manager, says: “At the operating level, MLT’s portfolio continues to be resilient, achieving a healthy portfolio occupancy of 96% and positive rental reversions. However, high borrowing costs, weak regional currencies and the challenging leasing environment in China have impacted our performance, and will remain headwinds going forward. We will stay vigilant and nimble in navigating these challenges, while driving our portfolio rejuvenation strategy to strengthen MLT’s resilience.”
Units in Mapletree Logistics Trust M44U closed 1 cent lower, or 0.74% down, at $1.34 on April 29.
