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Mapletree Logistics Trust’s (MLT) gross revenue increased by 5 percent to S$85.1 million in the first quarter ended 30 June 2015 (Q1 FY15/16), its trust manager announced in an SGX filing.
The trust reported a S$81 million in the corresponding period a year ago.
Meanwhile, net property income rose by 3 percent to S$71.1 million from S$68.97 million previously.
The trust attributed the increases to acquisitions and stronger earnings of existing properties, especially in Hong Kong. However, the financial results were partially offset by lower contributions from facilities recently converted to multi-tenanted buildings (MTBs) from single-user assets (SUAs) in Singapore, as well as the higher property expenses amounting to S$1.9 million due to the larger portfolio and the heftier costs stemming from the conversions.
Despite the good performance, distributable income dipped by 1.6 percent to S$45.8 million, while distribution per unit (DPU) fell by 2.6 percent to 1.85 cents, given the larger number of issued units. Moreover, the results a year ago included an additional distributable income and DPU of S$0.6 million and 0.025 cents respectively due to a divestment.
“Q1 was an active quarter for MLT. As we continue our efforts to rejuvenate and rebalance the portfolio, we have announced three accretive acquisitions of about S$304 million in growth markets, namely South Korea, Vietnam, and Australia. These properties are well-located, designed with high specifications, and leased to good quality tenants with annual rental escalations. The two acquisitions in South Korea and Vietnam have been completed while the Australian acquisition is expected to be completed by August 2015,” said Ng Kiat, CEO of Mapletree Logistics Trust Management.
“On the operational front, we remain very focused on asset and lease management, especially for the SUA to MTB conversions. Our efforts have helped to maintain an overall stable occupancy rate of 96.6 percent,” she added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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