Bookmark & Share
Three DBS Vickers analysts revealed that the operational performance of Mapletree Logistics Trust for the six-month period that ended on 30 September 2018 was in line with their estimates, reported SG investors.
Based on the trust’s latest financial results, its gross revenue and net property income (NPI) rose by 13.8 percent and 14.6 percent to $106.65 million and $90.19 million respectively in Q2 FY2018/2019.
According to DBS Vickers analysts Derek Tan, Mervin Song and Carmen Tay, the healthy growth is attributed to better performance of its existing properties. Contributions from previous acquisitions in Hong Kong also helped mitigate the absence of rental income from the recent sale of five properties, in addition to the weakness of the Australian dollar that impacted rents of properties.
Distribution per unit (DPU) during the latest quarter and six-month period also edged up by 3.8 percent and 3.7 percent to 1.96 cents and 3.915 cents respectively.
Overall, Mapletree’s financial performance was driven by new contributions from 11 properties in China, where it acquired a 50 percent stake in all of them.
Despite the acquisition of these assets, which included newly completed facilities with lower occupancy of about 91 percent, the trust’s portfolio occupancy rose from 95.7 percent in Q1 FY2018/2019 to 97.6 percent in the quarter under review.
Occupancy in other important markets also improved. For instance, Singapore occupancy rates rose from 94.7 percent in the prior quarter to 96.3 percent, while that in South Korea increased from 93.8 percent to 94.2 percent. However, that in Hong Kong dipped from 100 percent to 98.6 percent.
Moreover, the analysts revealed that Mapletree is continuing its search for properties to buy. In fact, they expect the trust to conclude another $300 million worth of acquisitions towards the end of the 2020 fiscal year.
“It has been an exceptional year in terms of acquisitions, with Mapletree Logistics Trust acquiring close to $1 billion of properties.
“Looking ahead, we see an improved quality in portfolio post the acquisition of five warehouses in Singapore, whose contribution will boost earnings and infuse further income stability in H2 2019,” they added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
Related Articles:
Mapletree Logistics Trust gains full ownership of Hong Kong property
Mapletree buys five Singapore warehouses for $778.3m
Mapletree Logistics Trust secures requisite approval for warehouse acquisition