The manager of Mapletree Logistics Trust (MLT) has announced an available distribution per unit (DPU) of 1.957 cents for the 1Q19 ended June, up 3.7% from its 1Q18 DPU of 1.887 cents a year ago.
Gross revenue for 1Q19 grew 10.1% on-year to $105.4 million from $95.8 million previously, maily due to higher contributions from existing properties and acquisitions in Hong Kong completed in FY18.
Meanwhile, property expenses grew by 4.5% to $15.6 million from $15 million a year ago due to acquisitions costs as well as higher operation and maintenance expenses.
In all, net property income (NPI) grew by 11.1% to $89.8 million compared to $80.8 million a year ago.
As at end-June, portfolio occupancy rate stood at 95.7% compared to 96.6% a year ago.
The decline was attributed to a lower occupancy rate in China, after taking into account the trust’s recent acquisition of a 50% interest in 11 properties, some of which are newly completed such that several committed leases have yet to commence.
Including the committed leases, occupancy rate would have been 97.8% for China instead of 91%, and 97.1% for the MLT portfolio.
The manager notes that demand for prime logistics space in markets where MLT operates have remained stable, underpinned by domestic consumption and the growth of e-commerce.
Going forward, it expects its proposed acquisition of five modern, ramp-up logistics properties in Singapore to be accretive to distribution, while also strengthening MLT’s portfolio and competitive positioning in Singapore.
Units in MLT closed flat at $1.28 on Monday.