Mapletree Logistics Trust (MLT) has reported distribution per unit (DPU) of 2.003 cents for its 3QFY2025 ended Dec 31, 2024, down 11.1% y-o-y. In the period, the total distribution amount declared was $101.3 million, down 9.7% y-o-y.
There were a total of 5.06 billion units in the REIT as at Dec 31, 2024, compared to 4.98 billion units in the REIT in the same period the year before.
Gross revenue for the full-year dipped marginally by 0.9% y-o-y to $182.4 million, due to lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies against the Singapore dollar.
The bottom line was also affected by a 2.8% y-o-y increase in property expenses to $25.2 million, while borrowing costs grew 8.7% y-o-y to $39.9 million.
With this, net property income (NPI) for the quarter 3QFY2024/2025 declinedwas down by 1.4% y-o-y to $157.2 million.
On a quarterly basis, portfolio occupancy improved to 96.3% from 96.0% last quarter, reflecting higher occupancy rates in Singapore, South Korea and China.
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Meanwhile, the REIT’s cash and cash equivalents grew to $350.6 million, up 15.0% y-o-y.
Total debt outstanding increased by $37 million q-o-q to $5.59 billion as at Dec 31, 2024. This was mainly due to additional loans drawn to fund asset enhancement initiatives, partially offset by lower net translated loans attributable to a weaker Japanese yen and loan repayment with proceeds from divestments.
As at Dec 31, 2024, the weighted average lease expiry (WALE) stood at around 2.7 years.
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For the 9MFY2025, gross revenue declined marginally by 1.0% y-o-y to $547.4 million, while NPI shrunk 1.5% y-o-y to $472.5 million.
Reflecting the impact of higher borrowing costs and a lower divestment gain of $19.3 million, compared to $29.6 million in the 9MFY2024, the total amount distributable to unitholders fell 8.7% y-o-y to $307.3 million, and DPU for the period correspondingly decreased 10.2% y-o-y to 6.10 cents.
“Through active lease and asset management, we have successfully renewed or replaced the majority of the leases expiring this year. Portfolio occupancy improved to 96.3% with positive rental reversions of 3.4% achieved this quarter,” says Jean Kam, CEO of the manager.
Kam adds: “As we navigate through an increasingly uncertain macroeconomic environment, we remain focused on maintaining stability in the portfolio, while staying agile and proactive to adapt to evolving market conditions. We will continue to drive our rejuvenation strategy to strengthen MLT’s resilience.”
Portfolio update
In-line with its portfolio rejuvenation strategy, MLT has divested three properties in China and Japan, and announced the divestment of another property in Singapore during the 3QFY2025. Post-end of the quarter, the REIT has announced another two divestments in Malaysia and Singapore.
Totalling $201 million in sale value and executed at an average premium to valuation of 17%, MLT highlights that these divestments will provide it the financial flexibility to recycle capital into acquisitions of assets with higher growth potential.
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MLT warns that ongoing geopolitical conflicts, rising trade tensions and prospects of slower US rate cuts are contributing to an uncertain outlook for global growth, weighing on business and consumer sentiment.
Its financial results also look to continue to be impacted by a strong Singapore dollar against other regional currencies as well as higher borrowing costs as expiring loans and hedges are being replaced at higher rates.
In light of this, the manager will maintain its proactive hedging strategy to manage rising borrowing costs and mitigate the impact of depreciating regional currencies. Around 82% of total debt has been hedged into fixed rates and around 76% of MLT’s income stream for the next 12 months has been hedged into the Singapore dollar.
As at Dec 31, 2024, the REIT’s gearing was 40.3%, with an average debt duration of 3.5 years.
Units in Mapletree Logistics Trust REIT closed flat at $2.24 on Jan 21.
