Mapletree Logistics Trust DPU rises 7% in 3QFY13/14

Lower interest rates helped mitigate borrowing costs.

The Board of Directors of Mapletree Logistics Trust Management Ltd. (MLTM), manager of Mapletree Logistics Trust (MLT), announced the results for the third quarter (3Q FY13/14) and nine months ended 31 December 2013 which saw the company's gross revenue in 3Q FY13/14 grow 1% year-on-year to S$78.1 million.

"This was achieved despite lower revenue from the Japan portfolio arising from the weaker Japanese Yen," the company said.

Excluding forex impact, gross revenue would have increased by S$3.7 million or 5% y-o-y, mainly due to positive rental reversions in Singapore and Hong Kong, and contributions from two acquisitions completed in the past year. Reflecting the impact of the Japanese Yen depreciation, net property income declined by 0.2% y-o-y to S$67.4 million. Excluding forex impact, it would have reported a 4% y-o-y growth.

"As the income streams from Japan are substantially hedged, the impact of the weaker Japanese Yen on distributable income was mitigated. A S$2.2 million or 23% y-o-y fall in borrowing costs due to lower average interest rates achieved on replacement of expired interest rate hedge positions also contributed to the quarter’s performance," the company said.

Consequently, amount distributable to Unitholders increased by 8% y-o-y to S$45.0 million while DPU grew 7% to 1.84 cents. These results include the partial distribution of the net gain from the divestment of 30 Woodlands Loop amounting to S$0.6 million in amount distributable, or about 0.025 cents per Unit.

Excluding divestment gain, both amount distributable to Unitholders and DPU would have reported a 6% increase to S$44.4 million and 1.82 cents respectively.

Ms Ng Kiat, Chief Executive Officer of MLTM, said, “We are pleased to report continuing, steady growth in MLT’s DPU for the third quarter and nine months ended 31 December 2013, underpinned by stable occupancy and positive rental reversions. During the quarter, we completed Phase 1 of solar panel installation at four Japan properties,  which will provide an additional revenue stream for MLT. Meanwhile in Singapore, our first redevelopment project – Mapletree Benoi Logistics Hub – has obtained its Temporary Occupation Permit and a 100% lease commitment. We look forward to its contribution in the next financial year.”