Mapletree Logistics Trust Q4 DPU falls 7%, eyes $300 million asset sales

The firm posted weaker distributions amid divestments and currency headwinds, whilst portfolio occupancy stayed high at 96.9%.

Mapletree Logistics Trust’s (MLT) distribution per unit fell (DPU) 7.0% YoY to $0.01819 for the fourth quarter ended 31 March, as divestments and weaker regional currencies weighed on earnings.

For the full year, DPU declined 9.8% to $0.07262, whilst the amount distributable to unitholders fell 8.9% to $370.1m. Gross revenue for the year slipped 2.6% to $708.3m, whilst net property income fell 2.4% to $610.2m.

The firm said the decline was mainly due to the absence of contributions from divested properties and currency weakness.

Excluding divestment gains, however, fourth-quarter DPU from operations rose 0.9% YoY, supported by stable same-store performance and contribution from a completed redevelopment project in Singapore.

MLT is also eyeing up to $300m in asset sales, with China assets earmarked for sale to be offloaded into a planned renminbi fund.

Operationally, MLT’s portfolio remained resilient. Occupancy improved to 96.9% as of 31 March, from 96.4% in the previous quarter. Rental reversion was 3.3% including China and 4.2% excluding China, whilst China’s rental reversion improved slightly to -2.0% from -2.2% in the previous quarter.

During the quarter, MLT expanded in India with the acquisition of a freehold Grade A warehouse in Mumbai for about INR3.89b, or $53.2m.

Borrowing costs fell 3.0% YoY in the quarter due to refinancing and debt repayment using divestment proceeds. Aggregate leverage stood at 40.6%, with an average borrowing cost at 2.6% per annum. About 83% of total debt was hedged into fixed rates.

Looking ahead, MLT said higher borrowing costs and currency volatility are expected to continue weighing on financial performance.