DISTRIBUTION per unit (DPU) for Mapletree Logistics Trust (MLT) : M44U 0% rose 1.2 per cent to S$0.02253 for its third quarter ended Dec 31, 2023, underpinned by a resilient portfolio, contributions from acquisitions and divestment gains.

The latest DPU is up from the S$0.02227 from the same period a year ago, said the trust manager on Wednesday (Jan 24).

Gross revenue for the quarter went up 2.1 per cent to S$184 million, mainly due to higher contribution from existing properties in Singapore and contribution from acquisitions in Japan, South Korea and Australia, which were completed in the first quarter of FY 2023/24.

Net property income (NPI) rose 1.5 per cent year on year (yoy) to S$159.5 million, and the amount distributable to unitholders grew 4.8 per cent yoy to S$112.2 million.

At end-December, MLT had a gearing ratio of 38.8 per cent, with an average debt duration of 3.7 years.

The weighted average borrowing cost for Q3 stayed at 2.5 per cent per annum, said the trust manager.

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“MLT has more than sufficient liquidity to meet its maturing debt obligations in this financial year, as well as in FY24/25,” added the manager.

For the nine-month period, MLT’s gross revenue grew 0.2 per cent to S$552.9 million, and NPI declined by 0.2 per cent to S$479.6 million. 

Meanwhile, property expenses rose 2.8 per cent to S$73.3 million, mainly due to its enlarged portfolio, and an increase in property tax and maintenance expenses, said the manager.

The trust’s DPU for the nine months ended December rose 0.7 per cent to S$0.06792, including a divestment gain of S$29.6 million.

The amount distributable to unitholders rose correspondingly by 4 per cent to S$336.7 million during the period.

Despite the positive results, the manager’s chief executive officer Ng Kiat said that weaker regional currencies, high borrowing costs and a challenging leasing environment in China continue to pose headwinds to the trust’s financial performance.

“We remain laser-focused on rejuvenating our portfolio towards modern, high-specs assets and continue to implement proactive high-risk management strategies to navigate the uncertain economic landscape,” she added.

As at end-December last year, MLT’s portfolio consisted of 187 properties with a total value of S$13.3 billion.

Portfolio occupancy stood at 95.9 per cent as at end-December, and the weighted average lease expiry by net lettable area of the portfolio is about 2.9 years.

The portfolio had a positive average rental reversion of 3.8 per cent.

Some 83 per cent of MLT’s total debt has been hedged into fixed rates. Approximately 80 per cent of its income stream for the next 12 months had been hedged into the Singapore dollar.

In its outlook, the trust manager said that it would continue to focus on portfolio rejuvenation, with more than S$900 million in acquisitions of assets announced or completed in the year to date; it would also continue its divestment of properties with older specifications and limited potential to unlock value through redevelopment.

Units of MLT closed on Wednesday at S$1.63 ahead of the announcement of its results, up 1.24 per cent or S$0.02.