{"id":362664,"date":"2023-10-25T21:10:09","date_gmt":"2023-10-25T13:10:09","guid":{"rendered":"https:\/\/www.mingtiandi.com\/?p=362664"},"modified":"2023-10-26T08:07:44","modified_gmt":"2023-10-26T00:07:44","slug":"mapletree-logistics-trust-achieves-uptick-in-dpu-after-expansion","status":"publish","type":"post","link":"https:\/\/www.mingtiandi.com\/real-estate\/logistics\/mapletree-logistics-trust-achieves-uptick-in-dpu-after-expansion\/","title":{"rendered":"Mapletree Logistics Trust Achieves DPU Uptick After Expanding Portfolio"},"content":{"rendered":"
\"Mapletree

Mapletree Logistics Hub Tsing Yi in Hong Kong<\/p><\/div>\n

Mapletree Logistics Trust (MLT) increased distributions per unit (DPU) in the third quarter compared to year-earlier levels as the Singapore-listed REIT overcame currency fluctuations and higher interest rates after expanding its portfolio through an acquisition from CBRE Investment Management earlier this year.<\/p>\n

DPU for the trust rose S$0.023 cents for the three months from July to September, up 0.9 percent from the same period last year, the trust manager revealed in a press release<\/a>. Distributable income was up 4.2 percent to S$112.5million ($82 million) in the same time frame.<\/p>\n

\"\"<\/a><\/p>\n

The improved performance for the trust managed by Temasek Holdings-backed Mapletree Investment came despite a 10.2 percent rise in borrowing costs due to elevated interest rates and currency depreciation which dented income from its properties in Japan and mainland China. MLT attributed their increase in DPU to higher contributions from non-Chinese properties, especially those in Singapore and Australia.<\/p>\n

\u201cAt the operational level, our diversified portfolio continues to be resilient with high occupancy and strong tenant retention. However, higher borrowing costs and weaker regional currencies continue to impact our financial performance,\u201d said Ng Kiat, executive director of MLT.<\/p>\n

Mapletree Logistics Trust\u2019s uptick in distributions comes as other SGX-listed REITs, have seeen earnings slip, with Keppel DC REIT reporting a 6.5 percent year-on-year drop in DPU in the third quarter<\/a>. Suntec REIT saw DPU decline 14 percent<\/a> from the previous year.<\/p>\n

Expanded Portfolio<\/h3>\n

The trust\u2019s portfolio was 96.9 percent occupied as of 23 September, which helped to generate a 1.2 percent increase in net property income for the quarter. The REIT\u2019s properties cover a total of 8.1 million square metres (87 million square feet), with the portfolio dominated by holdings in Japan and China, with income from those assets dented by currency slides against the Singapore dollar.<\/p>\n

\"Ng

Kiat Ng, CEO of Mapletree Logistics Trust’s manager<\/p><\/div>\n

In the July to September period, the trust witnessed a rise in gross revenue of 1.5 percent to S$187 million contributing to 1.2 percent growth in net property income to S$162 million.<\/p>\n

Quarterly earnings climbed after the trust spent S$904 million acquiring a 329,028 square metre portfolio of warehouses in South Korea, Australia, and Japan from CBRE Investment Management<\/a> via a set of transactions which closed during the second quarter.<\/p>\n

Excluding properties in China, the trust\u2019s manager was able to increase rents by an average of 9.1 percent on new leases signed during the period with Hong Kong-based properties achieving 16.5 percent increases on average. Including China, weighted average rental reversions for during the quarter increased at a rate of 0.2 percent.<\/p>\n

The manager also achieved S$8.8 million in distributable income from the trust through divestment of properties during the quarter.<\/p>\n

\"\"<\/a><\/p>\n

Among the assets Mapletree Logistics Trust sold in the third quarter was the Moriya Centre warehouse in Japan<\/a>. Located an hour\u2019s drive north of Tokyo in Ibaraki prefecture, the asset spans 42,450 square metres of gross floor area, with an undisclosed buyer completing a purchase of the property on 26 September at S$92.2 million, which was a 12 percent premium compared to the warehouse\u2019s valuation of S$82.2 million.<\/p>\n

MLT also completed its sale of a warehouse at 8 Loyang Crescent in Singapore during the period. An unnamed third party paid S$27.8 million \u2013 a 17.3 percent from the property\u2019s valuation \u2013 to purchase the shed near Changi Airport in a deal which closed on 8 September.<\/p>\n

China Concerns<\/h3>\n

MLT\u2019s bets on the China logistics proved expensive during the third quarter with the trust\u2019s management signing new leases for its 43 mainland properties at an average 8.6 percent below previous rates.<\/p>\n

In a call with analyst, James Sung, head of asset management at MLT, said that northern, western and central China have an excess supply of logistics and industrial space, while sounding optimistic about a future recovery.<\/p>\n

\"\"<\/a><\/div><\/p>\n

\u201cThe operational situation in China itself, we expect to recover hopefully in four quarters around there, or earlier if the government has stimulated the economy with a booster,\u201d he said.<\/p>\n

Sung\u2019s cautious outlook contrasts with earlier statements by Lee Ark Boon<\/a>, Mapletree\u2019s chief executive officer for logistics development in China. Commenting in a May statement Lee said,<\/p>\n

\u201cAs the business environment improves, China is well placed to be the world\u2019s top growth economy in the near to medium term with its GDP growth target of over 5 percent this year.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Mapletree Logistics Trust (MLT) increased distributions per unit (DPU) in the third quarter compared to year-earlier levels as the Singapore-listed REIT overcame currency fluctuations and higher interest rates after expanding its portfolio through an acquisition from CBRE Investment Management earlier… Read More>><\/a><\/p>\n","protected":false},"author":18228,"featured_media":341018,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5385],"tags":[5382,5359,6425],"ppma_author":[9270],"authors":[{"term_id":9270,"user_id":18228,"is_guest":0,"slug":"poonyapat-luenam","display_name":"Poonyapat Luenam","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/9327c85c621e21355752a2cd898c2991?s=96&d=mm&r=g","user_url":"","last_name":"Luenam","first_name":"Poonyapat","description":""}],"_links":{"self":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/362664"}],"collection":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/users\/18228"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/comments?post=362664"}],"version-history":[{"count":0,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/posts\/362664\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media\/341018"}],"wp:attachment":[{"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/media?parent=362664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/categories?post=362664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/tags?post=362664"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.mingtiandi.com\/wp-json\/wp\/v2\/ppma_author?post=362664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}