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Mapletree Logistics Trust’s (MLT) distributable income rose by 2.7 percent to S$46.2 million for the third quarter ended 31 December 2014 (Q3 FY14/15) from nearly S$45 million during the same period a year ago, while distribution per unit (DPU) climbed by 1.6 percent to 1.87 cents from 1.84 cents previously.
At the same time, gross revenue rose by 6 percent to S$82.9 million from S$78.1 million in the corresponding period in 2013.
“The increase was driven mainly by an enlarged portfolio, contribution from Mapletree Benoi Logistics Hub and higher revenue from existing assets, but partially offset by lower occupancy in several properties in Singapore that were recently converted to multi-tenanted buildings,” it said.
However, revenue growth was dragged down by the depreciation of the Japanese Yen. Excluding this foreign exchange (forex) impact, gross revenue would have risen by 7.1 percent on an annual basis. Nevertheless, its blow on the distributable income was mitigated as income streams from Japan are significantly hedged.
As for property expenses, it rose to 13.4 million in the quarter under review from S$10.7 million a year ago due the enlarged portfolio and higher costs associated with converting single-tenanted properties in Singapore to multi-tenanted assets. Nonetheless, net property income (NPI) grew 3 percent to S$69.5 million versus S$67.4 million previously.
But the portfolio’s occupancy dipped to 96.9 percent as of 31 December 2014 from 97.2 percent in the previous quarter because of lower occupancy in Singapore, arising from downtime caused by the conversion of single-tenanted assets to multi-tenanted buildings.
CEO of Mapletree Logistics Trust Management CEO Ng Kiat said: “On the investment front, we added four quality assets in Q3 as part of our ongoing efforts to rebalance MLT’s portfolio to higher growth markets. This brings the total number of acquisitions to six this year, with a combined value of approximately S$209 million.”
According to Credit Suisse, these included the acquisition of the 10,400 sqm (GFA) 190A Pandan Loop in Singapore (pictured) for S$34 million and the 19,300 sqm (GFA) Smart Logistics Centre in South Korea for KRW21.4 billion (about S$25.5 million).
The trust also plans to sell 134 Joo Seng in Singapore for S$13.5 million and this transaction is expected to be completed in Q1 2015, added the Swiss financial institution.
Looking ahead, MLT’s operations in Singapore are expected to remain challenging with more conversions of single-tenanted buildings to multi-tenanted assets in the next 12 months, Ng forecasted.
Image: In November 2014, Mapletree Logistics Trust agreed to buy the property at 190A Pandan Loop, a four-storey purpose-built food distribution centre in JTC Food Zone in the Pandan Loop industrial estate.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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