“We expect occupancies to stay resilient on the back of steady demand growth, and raised DPUs by 4% on stronger rental assumptions,” writes Chua in his July 20 note.
During the quarter, MLT enjoyed better rental reversions of 2.2%, a slight dip from the 2.4% gain enjoyed in the preceding 4QFY2021, led mainly by its Vietnam, Hong Kong and Singapore properties.
See also: Mapletree Logistics Trust to raise $650.0 mil through equity fund
Overall portfolio occupancy increased from 97.5% to 97.8%, and weighted average lease expiry (WALE) was stable at 3.8 years.
“We expect its occupancies to remain resilient, as demand continues to be driven by e-commerce tenancies and 3PLs,” says Chua.
“While its retail sector occupiers have adopted a wait-and-see approach, MLT is looking to drive rental upside from its higher value tenants in the next 9-12 months,” he adds.
MLT last traded at $2.10, down 0.94% on July 19.
