Mapletree Logistics Trust DPU down 11.1% to $0.02003 in Q3

Revenue for the quarter also declined by 0.9% YoY.

Mapletree Logistics Trust (MLT) reported an 11.1% year-on-year drop in distribution per unit to $0.02003 for the third quarter ended 31 December 2024, from $0.02253 in the prior year.

Gross revenue for the quarter declined by 0.9% year-on-year (y-o-y) to $182.4m, attributed to lower revenue contributions from China, divested properties, and the impact of regional currency depreciation against the Singapore Dollar.

These declines were partially offset by stronger performances in Singapore, Australia, Hong Kong SAR, and contributions from recent acquisitions.

Net property income (NPI) also fell 1.4%YoY to $157.2m. Adjusted for constant currency, revenue would have risen by 0.6% whilst NPI would remain flat.

Higher borrowing costs, up 8.7% YoY to $39.9m, further impacted distributable income.

For the first nine months of FY24/25, gross revenue dropped 1%YoY to $547.4m, whilst NPI declined 1.5% to $472.5m. On a constant currency basis, revenue and NPI showed modest growth of 0.8% and 0.3%, respectively.

MLT divested three properties in China and Japan during the quarter and announced two additional divestments post-quarter. These divestments, totalling $201m and executed at an average 17% premium to valuation, are part of MLT’s strategy to recycle capital into higher-growth assets.

The group highlighted ongoing challenges, including geopolitical conflicts, trade tensions, and slower US interest rate cuts, which are weighing on global economic growth and logistics demand. Whilst most markets demonstrated resilience, it said that China remains a challenging environment with continued negative rental reversions expected.

Unitholders will receive a cash distribution of $0.02003 per unit on 13 March 2025, with the record date set for 31 January 2025.