The manager of Mapletree Logistics Trust (MLT) has reported distribution per unit (DPU) of 2.268 cents for the 4QFY2021/2022 ended March. The quarter’s DPU stood 5% higher than the DPU of 2.161 cents in the corresponding period the year before.
This brings DPU for the FY2021/2022 to 8.787 cents, 5.5% higher than the previous year’s DPU of 8.326 cents.
Distributable income for the 4QFY2021/2022 increased by 16.7% y-o-y to $108.0 million over a unit base of 4.78 million units from 4.28 million units in the year before.
The higher unit base was due to the equity fundraising that took place in the 3QFY2021/2022.
The higher distributable income includes the partial distribution of the gain from the divestment of MapletreeLog Integrated (Shanghai) (HKSAR) Limited and its wholly-owned subsidiary, MapletreeLog Integrated (Shanghai) Co., Ltd. Of $1.80 million per quarter for 12 quarters from 3QFY2019/2020. MapletreeLog Integrated (Shanghai) owns Mapletree Waigaoqiao Logistics Park (Mapletree Integrated).
Distributable income for the FY2021/2022 increased by 17.3% y-o-y to $390.7 million.
The higher full-year distributable income includes the partial distribution of the gains from the divestments of Mapletree Integrated, as well as the gains from the divestments of Gyoda Centre, Iwatsuki B Centre, Atsugi Centre, Iruma Centre and Mokurenji Centre of $990,000 per quarter (for eight quarters from 1QFY2019/2020) and 7 Tai Seng Drive of $1.92 million (for 12 quarters from 1QFY2018/2019) respectively.
Excluding divestment gains, the adjusted DPU for the quarter and FY2021/2022 would have increased by 8.7% and 9.9% y-o-y to 2.230 cents and 8.626 cents respectively.
Gross revenue for the 4QFY2021/2022 increased 16.5% y-o-y to $182.9 million due to higher revenue from existing properties, as well as contributions from accretive acquisitions completed during the year and the year before. The lower rental rebates granted to eligible tenants during the quarter also contributed to the revenue growth.
As such, net property income (NPI) for the quarter increased by 14.9% y-o-y to $157.1 million after deducting property expenses of $25.8 million, which increased by 26.7% y-o-y.
FY2021/2022 gross revenue grew by 20.9% y-o-y to $678.6 million, while NPI grew by 18.6% y-o-y to $592.1 million on the back of a 39.3% y-o-y growth in property expenses.
“FY2021/2022 was [a] very active year on the investment front. We added 20 well-located modern logistics assets across seven markets spanning over 15 million square feet, which has significantly deepened our regional network presence. Amidst growing economic headwinds, we will stay focused on maintaining stable operations, while driving our portfolio rejuvenation strategy to strengthen MLT’s resilience and add value to the portfolio,” says Ng Kiat, CEO of the manager.
As at March 31, MLT reported an overall portfolio occupancy rate of 96.7% with a weighted average lease expiry (WALE) of 3.5 years by net lettable assets (NLA).
The REIT achieved a positive rental reversion of 2.9%.
Its portfolio value stood at $13.1 billion, up 21.1% y-o-y, while net asset value (NAV) per unit increased 11.3% y-o-y to $1.48.
The higher value was largely attributable to $1.8 billion in acquisitions and capital expenditure as well as a net appreciation of $572 million in investment properties mainly in Australia, Hong Kong and China.
As at March 31, MLT’s gearing ratio stood at 36.8% after taking into account the net revaluation gain of $572 million.
Cash and cash equivalents for the period stood at $333.6 million.
Overall, leasing demand in MLT’s markets has stayed “resilient”, says the REIT manager. The leasing market has remained stable in Singapore, Hong Kong as well as Japan, South Korea and Australia. In China, however, the REIT is seeing tenants turn more cautious on business expansion amid the slower economic growth and recent Covid-19 lockdowns.
“The manager remains watchful of the evolving environment and keeps its focus on proactive lease management to maintain stable occupancies. Where appropriate, the manager will evaluate and pursue opportunities such as asset enhancements and divestments to create value for unitholders,” reads the statement.
The record date of the distribution is at May 10. Unitholders will receive their distributions on June 21.
Units in MLT closed flat at $1.78 on April 28.