Mapletree Logistics Trust's NPI rose 12.6% to $438.54m in FY2020

Existing properties posted higher revenues.

Mapletree Logistics Trust’s (MLT) net property income (NPI) grew 12.6% YoY to $438.54m for FY2020, from $389.47m in 2019, the company announced. Gross revenue increased by 8% to $490.78m over the same period.

Gross revenue rose on the back of higher revenue from existing properties, completed redevelopment of Mapletree Ouluo Logistics Park Phase 1, acquisitions in Singapore, Australia, South Korea Malaysia, Vietnam and Japan, and higher translated revenue from the stronger Japanese Yen and Hong Kong Dollar.

However, this was partly offset by absence of revenue from six divestments completed in FY2020 and two divestments completed in FY2019, as well as the impact of a weaker Australian Dollar, Korean Won and Chinese Renminbi.

Furthermore, distributable income also rose to $301.71m in the fiscal year, a 11.7% YoY expansion from $270.03m in the previous year. Distribution per unit (DPU) stretched 2.5% YoY to 8.142 cents apiece from 7.941 cents in 2019.

During the year, MLT completed nine acquisitions in Malaysia, China, Vietnam, Korea, and Japan, incurring a $806m capital expenditure on redevelopment and other building improvements.

MLT’s assets under management also climbed by $959m YoY to $8.9b. The higher value was largely due to approximately $806m in acquisitions and capital expenditure and $117m net appreciation in investment properties to properties in Hong Kong. MLT’s lease expiry profile also remains well spread out with a weighted average lease expiry (by net lettable area) of 4.3 years.

For Q4 2019-2020, MLT maintained a high portfolio occupancy rate, improving to 98% from last quarter’s 97.7% due to higher occupancies in Hong Kong and China. Average rental reversion was 2%, whilst net asset value (NAV) per unit rose 3.4% to $1.21, compared to $1.17 a year ago.

NPI also jumped 9.3% YoY in the same quarter to $9114.74m, whilst revenue rose 5.% YoY to $128.07m.

Accordingly, total debt outstanding as of 31 March was $3.55m, translating to a gearing
ratio of 39.3%. The weighted average borrowing cost for Q4 was stable at 2.5% per annum. Debt due in the coming financial year amounts to $242m or 6% of total debt.

MLT said it has sufficient facilities to meet its maturing debt obligations based on the available committed credit facilities of over $700m. As at 31 March, approximately 77% and 82% of total debt has been hedged into fixed rates and income stream for the next 12 months, respectively

Social distancing measures and lockdowns have also caused disruptions to supply chains and market demand by varying degrees across MLT’s geographies. About 5% of the tenant base is impacted in Singapore, whilst all tenants remain fully operational Hong Kong SAR and Japan.

MLT will pay a distribution of 2.048 cents per unit on 12 June for the period between 1 January to 31 March with the record date on 4 May.