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Mapletree Logistics Trust’s Latest Earnings: DPU rises by Almost 4%

Mapletree Logistics Trust (SGX: M44U) reported higher distribution per unit (DPU) on Monday, boosted by growth from its existing properties and the addition of two new Hong Kong properties.

The latest report was for the second-quarter earnings results for fiscal year ending on 31 March 2019 (FY18/19). Mapletree Logistics Trust is an Asia-focused logistic real estate investment trust (REIT) with 138 properties in its portfolio. The properties span across Singapore, Hong Kong, Japan, Australia, South Korea, China, Malaysia and Vietnam and have a total book value of S$7.6 billion.

Let’s take a quick look at the results.

1. Gross revenue for the reporting quarter increased by 13.8% year-on-year to S$106.6 million while net property income rose by 14.6% to S$90.2 million.

2. Distribution per unit (DPU) followed the upward trend, rising by 3.8% to 1.958 cents.

3. Next, let’s look at Mapletree Logistics Trust’s debt profile. As of 30 September 2018, Mapletree Logistics Trust’s gearing stood at 38.1% which is up slightly from the 36.4% recorded at end June 2018. The weighted average annualized interest rate stood at 2.5% with an average debt duration of 4.3 years. Around 80% of the REIT’s debt on fixed-rate loans while the remainder was on a floating basis.

4. Moving on, we look at Mapletree Logistics Trust’s operational statistics. The REIT’s portfolio had a committed occupancy rate of 97.6% at the end of the quarter, which is an increase from 95.7% at the end of June. The increase in occupancy was from higher occupancies in Singapore, South Korea, China, and Vietnam, and partly offset by lower occupancy in Hong Kong.

5. The weighted average lease expiry (by net leasable area) was 3.8 years at the end of the reporting quarter with only 12.8% of the leases expiring in FY18/19. The overall rental reversion rate for the reporting quarter came in at approximately 1.3%, contributed mainly by its properties in Hong Kong and Vietnam.

6. Mapletree Logistics Trust’s net asset value (NAV) remained stable compared to the last quarter coming in at S$1.13.

The Road Ahead

Here’s a quick update on the portfolio outlook given by Mapletree Logistics:

“The Manager continues to pursue a portfolio rejuvenation strategy to strengthen MLT’s portfolio quality and competitiveness. In Singapore, the Manager has recently completed the acquisition of five modern ramp-up warehouses and divested a property with older warehouse specifications. Mapletree Pioneer Logistics Hub, a redevelopment project completed in January 2018, has achieved 100% occupancy rate since August 2018.”

Units of Mapletree Logistics opened at S$1.24 today, sporting a price-to-book ratio of around 1.1 and a yield of 6.2%.

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The Motley Fool Singapore contributor Esjay contributed to this article. Esjay does not own any of the shares mentioned.

The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. Motley Fool Singapore writer Chin Hui Leong owns shares of Mapletree Logistics Trust.