Mapletree Logistics Trust sees 3.5% DPU rise despite lower occupancy

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Mapletree Logistics Trust's (MLT's) distributable income for its 1Q FY19/20 rose 20.8% year-on-year to SGD73.6 million.

Its distribution per unit (DPU) grew 3.5% to 2.025 cents on an enlarged unit base.

The REIT’s gross revenue for the quarter increased 13.6% year-on-year to SGD119.8 million while net property income saw an 18.2% rise to SGD106.1 million.

MLT has attributed the results to a stable performance from its existing properties, contributions from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1, and accretive acquisitions completed in FY18/19.

However, the REIT’s revenue growth was partially offset by the absence of contribution from five properties in Japan divested during 1Q FY19/20, and two properties in Singapore divested in FY18/19.

The REIT’s portfolio occupancy fell slightly to 97.6% as at 30 June 2019, compared to 98.0% in the previous quarter.

This is due to slightly lower occupancy rates in Singapore, Hong Kong and South Korea, but partially offset by higher occupancy in China.

The REIT’s portfolio weighted average lease expiry (WALE) by net lettable area was extended to 4.8 years from 3.8 years in the prior quarter, mainly due to the successful renewal of two long term leases in Singapore.

MLT’s aggregate leverage decreased to 36.8% as at 30 June 2019 from 37.7% in the previous quarter, with cost of debt at 2.8% per annum.

The REIT is currently trading at a yield of about 4.9% based on data from the Singapore REITs fundamentals table.

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