Mapletree Logistics Trust's net profit jumps 29.1% to $60.9m in Q2

Two Hong Kong acquisitions fueled its performance.

Mapletree Logistics Trust (MLT) saw a 10.15% growth YoY in their revenue to $105.4m in Q2 from $95.8m, an announcement revealed. The firm’s amount distributable to unitholders jumped 29.1% YoY to $60.9m whilst distribution per unit (DPU) grew 3.7% to $0.196 on an enlarged unit base.

Meanwhile, MLT’s net property income (NPI) grew 11.1% YoY to $89.8m in Q2 2018 from $80.84m.

The firm believes that the revenue growth was fueled by its current portfolio's improved performance as well as two Hong Kong acquisitions.

“In China, we strengthened MLT’s presence with the acquisition of a 50% interest in 11 new Grade-A logistics properties,” MLT Management CEO Ng Kiat said.

The CEO also noted that they sold an old Singapore warehouse and will buy five modern ramp-up warehouses.

“These initiatives are in line with our strategy to build a high quality and resilient portfolio to deliver sustainable returns for our unitholders,” Ng commented.

The firm’s occupancy rate slipped to 95.7% by Q2 compared to 96.6% in Q1 amidst lower occupancy rate in China which took into account the recent acquisition of 11 properties where MLT has 50% of stakes.
Including the committed leases, the occupancy rate would be 97.8% for China and 97.1% for the MLT portfolio.

In June, MLT raised $220 m equity through private placement to partially fund the acquisition of the 11 China properties.

As of Q2, MLT’s portfolio has 134 properties with a total value of assets under management worth $6.8b.

“About 82% of MLT’s total debt has been hedged into fixed rates while about 73% of income stream for FY18/19 has been hedged into or is derived in Singapore dollar,” MLT said.

With this, MLT thinks that the trade tensions between major economies and rising interest rates have increased risks for the firms.