Published July 26, 2010
MapletreeLog Q2 DPU up 1.4%
Amount distributable to unitholders was $30.9 million, up 8%
By EMILYN YAP
MAPLETREE Logistics Trust (MapletreeLog) yesterday posted improved results for the second quarter on the back of lower property and other expenses as well as borrowing costs.
Brighter outlook: MapletreeLog has seen increased levels of activities and enquiries in all the markets that it operates in, according to CEO Richard Lai
Amount distributable to unitholders in Q2 was $30.9 million, up 8 per cent from a year ago. Distribution per unit (DPU) rose 1.4 per cent to 1.5 cents. This was despite gross revenue staying relatively flat at $52 million.
The top line was affected by a repositioning exercise at some of MapletreeLog's properties. The trust converted three from single-user to multi-tenanted buildings for better rental revenues, but that caused the portfolio occupancy rate to dip slightly to 97 per cent as at June 30. The trust expects occupancies to 'return to normal' in the coming quarters.
Also, recent acquisitions have yet to boost results. MapletreeLog bought five properties since December last year but of these, three were completed only in Q2. The trust expects the full benefit from these assets to make an impact from Q3.
Lower costs in Q2 helped support the trust's earnings. Property expenses dipped 2 per cent from a year ago to $6.2 million, and borrowing costs fell 13 per cent to $7.2 million. Net foreign exchange losses also narrowed 97 per cent to $162,000.
MapletreeLog is upbeat about its prospects. 'In all the markets that we operate in, we have seen increased levels of activities and enquiries,' said the trust manager's CEO Richard Lai.
'For the renewals that took place during the quarter, we have begun to witness some positive rental reversions especially in Singapore and we believe, as the existing stock of warehouses are taken up, that rental reversions should be stronger in the quarters to come.'
MapletreeLog said it will continue to build its pipeline of acquisitions. In Q2, it financed its purchases fully through debt. This caused its leverage ratio to increase slightly to 38.8 per cent as at June 30, up 0.2 percentage points from three months ago.
For the first half, MapletreeLog's distributable income was $61.7 million, up 8 per cent year-on-year. DPU was 3 cents, rising 1.7 per cent. The trust will pay out 1.5 cents to unitholders for the period April 1 to June 30 on Aug 27.
MapletreeLog units closed unchanged on Friday at 88 cents.