Mapletree Logistics Trust property in Japan, Moriya Centre.Mapletree Logistics Trust property in Japan, Moriya Centre. (Photo: Mapletree Logistics Trust)

Singapore-listed industrial REIT, Mapletree Logistics Trust (SGX:M44U), has announced a distributable income of SGD45.9 million for its 4Q 14/15, SGD0.4 million or 1% lower than the corresponding period from FY13/14.

The REIT has attributed the lower figure to higher borrowing costs attributable to incremental borrowings to fund acquisitions and capital expenditure. Accordingly distribution per unit (DPU) declined 2% year-on-year to 1.85 Singapore cents, after accounting for an enlarged issued units base.

However full year FY14/15 DPU stands at 7.50 Singapore cents, 2% higher than full year DPU of 7.35 cents from FY13/14.

CEO of MLT’s manager, Ng Kiat, has said that the REIT will continue with intensive marketing and leasing efforts as more single user assets are being converted into multi-tenanted buildings. “We will also continue with our capital recycling strategy to divest older, lower yielding assets and recycle the proceeds into higher yielding investments”, said Ng.

The REIT is divesting 134 Joo Seng Road, completion of which is pending regulatory approval, and we will be embarking on a redevelopment project at 76 Pioneer Road this financial year.

Portfolio weighted average lease term to expiry (WALE) is approximately 4.3 years, with around 44% of the leases expiring in FY18/19 and beyond. Portfolio occupancy stands at 96.7%, a slight slippage compared to 98.3% a year ago. “The decline was attributable to lower occupancy in Singapore due to downtime caused by the conversion of single user assets to multi-tenanted buildings”, said the REIT.

As at 31 March 2015, the REIT’s weighted average debt maturity was approximately 3.6 years while the aggregate leverage was 34.3%. The weighted average borrowing cost in FY14/15 was around 2.1%.

Units of Mapletree Logistics Trust are currently listed on the Singapore Exchange at SGD1.25.

Mapletree Logistics Trust property in Japan, Moriya Centre.
Mapletree Logistics Trust property in Japan, Moriya Centre. (Photo: Mapletree Logistics Trust)

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.