Mapletree Logistics Trust's NPI up 2.5% to $78.7m in Q2

It will distribute $5.4m from the sale of three properties.

Mapletree Logistics Trust (MLT) celebrates as its net property income (NPI) went up 2.5% YoY to $78.7m in Q2.

According to OCBC Investment Research, distribution per unit (DPU) grew 1.5% YoY to 1.887 cents, whilst revenue rose by 2.3% YoY to $93.7m.

MLT was able to sell three properties, Zama Centre and Shiroishi Centre in Japan and 4 Toh Tuck Link in Singapore.

The combined gains of $5.4m will be distributed to unitholders over six to eight quarters, whilst the proceeds received will be redeployed into renovations and inorganic growth opportunities.

MLT’s $836.08m (HK$4.8b) acquisition of Mapletree Logistics Hub Tsing Yi in Hong Kong at an initial NPI yield of 5.7% from its sponsor was completed on 12 October.

Here's more from OCBC Investment Research:

Management delivered positive rental reversions of 1.4% in 2Q2018, mainly due to strength from Hong Kong and China.

This was, however, a moderation from the 6% rental reversion achieved in 1QFY18.

Overall portfolio occupancy inched up slightly from 95.5% (as at 30 June 2017) to 95.8%, with all its markets registering either improved or unchanged occupancy.

Looking ahead, MLT continues to see sustained leasing activities across its markets, although supply pressures in Singapore are likely to hamper the recovery process. Management has thus been diversifying its exposure into other geographies.