Mapletree Logistics Trust’s (SGX: M44U) full year earnings results saw a 2.4% increase in distributable amount from S$162.4m to S$166.4m. The annual distribution per unit (DPU) for the trust grew by 2.5% from S$0.067 to S$0.068.
Yearly gross revenue for the trust increased by 11% from S$277.3m to S$307.8m. MLT had expanded its property portfolio, and received higher rents due to positive rental reversions and higher occupancy rates. These helped account for the trust’s gross revenue growth. Ascendas REIT (SGX: A17U), which has logistics centres in its’ Singapore property portfolio (MLT has 53 properties in Singapore), also saw positive rental reversions that averaged 14% in its last completed financial year.
Over the past year, MLT’s properties had a fair value gain of S$20.3m, and it had spent S$205m on property-acquisitions and capital expenditures. Some of the trust’s properties’ are denominated in Japanese yen and they suffered due to the effects of a weaker yen. These factors resulted in the trust’s 111 properties being valued at S$4.07b, a slight increase from last year’s S$4.06b.
MLT’s balance sheet had improved from last year’s as total debt had declined by $61m from S$1.5b to S$1.43b. The trust’s gearing currently stands at 34.1%, an improvement over last year’s 35.2%. MLT is given a Baa1 credit rating by ratings agencies, Moody’s, unchanged from last year.
While on the topic of the trust’s debt and gearing, MLT has S$289m worth of loans that are due in the current financial year and it does not see any problems in being able to pay for the loans. In addition, the Manager is “actively exploring refinancing options to diversify funding sources and lengthen the debt maturity profile”.
Regarding the current financial year, the trust’s Manager “remains focused on maintaining strong portfolio occupancy by actively managing leases due for renewal. In FY13/14, about 15% of MLT’s leases will be expiring, the majority of which are in Singapore, Malaysia and Hong Kong”.
At Wednesday’s closing price of $1.31, MLT would be selling for 1.4 times its net-asset value with a dividend yield of 5.2%.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.