Mapletree Logistics Trust's Q4 DPU falls 11.6%; manager warns trade tensions could weigh on performance
[SINGAPORE] Lower revenue contribution from China and weak regional currencies crimped Mapletree Logistics Trust's (MLT) earnings for its fourth quarter, with distribution per unit (DPU) falling 11.6 per cent to S$0.01955.
Gross revenue for the three months ended Mar 31 dipped 0.8 per cent to S$179.6 million from a year earlier, while net property income (NPI) also fell, by 1.6 per cent to S$152.8 million, its manager said on Wednesday (Apr 23).
NPI was also pressured by a 4.5 per cent increase in property expenses to S$26.8 million.
For the full year, gross revenue slid 0.9 per cent to S$727 million, while NPI dropped 1.5 per cent to S$625.3 million.
The amount distributable to unitholders declined 9.1 per cent to S$406.4 million, hit by higher borrowing costs and lower divestment gain. DPU for the year fell 10.6 per cent to S$0.08053.
Despite challenges in the China market, MLT's manager said the overall portfolio saw stable occupancy and positive rental reversions.
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MLT's portfolio occupancy was relatively stable at 96.2 per cent as at Mar 31, reflecting higher occupancy rates in Japan and China, as well as full occupancy in Australia and India. The portfolio's weighted average lease expiry is about 2.8 years.
The trust reported an average positive rental reversion of 5.1 per cent across its portfolio in Q4 FY25, but the performance was uneven. Japan properties had the highest reversion of 15.7 per cent, while its China properties had a negative reversion of 9.4 per cent.
Aggregate portfolio valuation rises
MLT owns 180 properties as at Mar 31, with an aggregate portfolio property valuation of S$13.3 billion – a 0.8 per cent increase from the previous year, boosted by its acquisition of three properties in the year.
The rise was however partly offset by MLT's divestment of 10 properties, a currency translation loss of S$116 million and a S$62 million net fair-value loss on investment properties. The latter largely arises from properties in China, South Korea and Singapore.
'Looking ahead, the macroeconomic outlook has grown more uncertain amid ongoing trade tensions, which could weigh on our business performance,' said Jean Kam, chief executive of MLT's manager.
The manager estimates the majority of MLT's tenants serve domestic consumption, accounting for about 85 per cent of its portfolio revenue during Q4. Tenants engaged in exports businesses are projected to account for the remaining 15 per cent of revenue.
The manager's priority in the current fiscal year will be to focus on tenant retention and cost management, 'as well as proactive capital management to mitigate the headwinds form higher borrowing costs and forex volatility.'
During Q4, MLT completed the divestments of three properties in Malaysia. It also announced the divestments of another three properties in Malaysia and Singapore as part of its portfolio rejuvenation strategy.
This brings the total of announced and completed divestments to 14 for the year ended Mar 31, with an aggregate sale value of S$209 million.
Units of MLT closed S$0.04, or 3.4 per cent higher, at S$1.21 before the announcement.
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