Mapletree Logistics Trust's profit edges 9.7% higher

All thanks to past acquisitions.

According to OCBC, Mapletree Logistics Trust (MLT) reported its 3QFY13 scorecard last evening. NPI grew by 9.7% YoY to S$67.5m due to contribution from its past acquisitions and healthy organic growth from its existing properties. 

Amount distributable to unitholders and DPU, on the other hand, recorded a marginal increase of ~1% to S$41.8m and 1.72 S cents respectively.

The slower pace of growth was due to a S$4.7m distribution to perpetual securities holders and a S$0.7m divestment gains in 3QFY12. Excluding the gains, both
items would have improved by ~3%.

Here's more from OCBC:

The results were largely within expectations, given that 9MFY13 DPU formed 73% of both our and consensus full-year forecasts.

Portfolio occupancy as at 31 Dec 2012 was maintained at 99.2%, unchanged from 2Q as a result of active asset management efforts. During the quarter, we note that MLT had renewed/replaced ~124,000 sqm of space, making up 97% of total NLA due for renewal in 3Q.

As such, only 1.9% of its leases are left for renewal for the rest of FY13. Weighted average lease to expiry also remained strong at 5.5 years, giving MLT good earnings predictability.

Moreover, average rentals achieved in 3Q were 17% higher than preceding rents (2Q: 8%). This reflects continued healthy demand in logistics space in our view.

MLT’s aggregate leverage also improved 1.1ppt QoQ to 35.9%, while funding costs and debt duration stood steady at 2.4% and 4.1 years respectively.

While MLT was impacted by weakening JPY on various fronts, its distributable income was unscathed, just as we had previously expected since over 90% of its income stream is hedged/derived in SGD.

Looking ahead, MLT warned that the economic outlook continues to remain fragile but added that leasing demand has been holding well thus far.