Mapletree Logistics Trust net property income slides 1.3% to S$66.6m

Weaker Japanese yen pulls down profits.

"Mapletree Logistics Trust (MLT) reported a 1.3% YoY drop in 2QFY14 NPI to S$66.6m, as its Japan portfolio saw lower translated income on weaker JPY," said OCBC Investment Research in its results analysis.

"Stripping out the forex impact, NPI would have increased by 3.4% due to positive rental reversions and contributions from its past three acquisitions," it added.

OCBC said that total amount distributable to unitholders grew at a faster pace of 7.5% to S$44.5m, as MLT substantially hedged its income streams from Japan, benefitted from lower financing costs, and distributed S$0.6m in divestment gains from 30 Woodlands Loop.

For the quarter, DPU came in at 1.82 S cents, representing a 6.4% growth YoY.

"We deem the results to be in line with our expectations, as 1HFY14 DPU of 3.62 S cents have met 49.9% of our full-year DPU forecasts (consensus: 51.0%). Looking ahead, MLT reiterated that it will continue to optimize the portfolio yield through repositioning, enhancement and redevelopment opportunities," said OCBC.