COMMERCIAL PROPERTY | Staff Reporter, Singapore

Mapletree Logistics Trust NPI climbed 25.9% to $104.49m in Q3

The increase was driven by organic growth from its existing portfolio and contribution from its latest redevelopment.

Mapletree Logistics Trust (MLT) saw a healthy set of results after its net property income (NPI) rose 25.9% YoY to $104.49m in Q3 FY18/19 which ended 31 December 2018 from $83.02m in 2017, an announcement revealed.

Gross revenue also rose 23% YoY to $120.79m in Q3 from $98.22m for the same period in 2017, whilst its distribution per unit (DPU) also advanced 5% to $0.02 from $0.019.

Also read: Mapletree Logistics Trust NPI up 14.6% to $90.19m in Q2 amidst acquisition spree

The robust performance was attributed to organic growth from its existing portfolio, as well as from the initial contribution from its completed redevelopment of Mapletree Oulio Logistics Park Phase 1 in China. Likewise, contributions from its acquisitions in Hong Kong, Singapore, Australia and South Korea further boosted MLT’s financial performance during Q3. Overall growth however was partially offset by the absence of contribution from one property the firm divested during the year.

The firm’s total debt outstanding also increased by $105m to $3.1b as of December 2018. MLT noted how the acquisitions the firm completed during Q3 were funded by net incremental loans of $113m drawn, as well as proceeds from the divestments of a property in Singapore and Distribution Reinvestment Plan.

“Amidst the volatile economic environment, we remain vigilant and focused on working closely with our tenants to maintain a stable portfolio performance,” Mapletree Logistics Trust Management’s (MLTM) CEO Ng Kiat said in a statement. “We will continue to keep the momentum on portfolio rejuvenation through quality acquisitions and selective divestments.”

Also read: Mapletree Logistics Trust's DPU could grow 3% by 2020: analyst

MLT’s portfolio comprises of 140 properties with a total value of assets under management (AUM) of $7.8b as of December 2018, according to its financial statement. Portfolio occupancy remained steady at 97% in Q3 compared with 97.6% in Q2.

It also noted in its financial statement that property expenses increased by $1.1m mainly due to its acquisitions completed in FY2017/18 and higher operation and maintenance expenses. However, the increase was partially offset by divestments completed in Q4 FY17/18 and Q1 FY18/19.

Against a backdrop of global economic uncertainties, tightening financial conditions and escalating trade tensions between US and China, the firm remains cautious yet optimistic on leasing demand for MLT’s logistics facilities.

“MLTM remains vigilant of the evolving environment and maintains its focus on enhancing portfolio resilience,” MLT highlighted. “MLTM proactively manages the financing risks from interest rate and foreign exchange volatility. About 85% of MLT’s total debt has been hedged into fixed rates, whilst approximately 88% of income stream for FY18/19 has been hedged.” 

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