Mapletree Logistics Trust saw a 1.35 per cent on-year increase in its distribution per unit in the second quarter this year.
Its DPU for the second quarter came in at 1.5 cents, just above the 1.48 cents announced in the same period a year ago.
Distributable income rose by 7.7 per cent on-year to some S$30.8 million, while net property income was up 0.3 per cent on-year to about S$45.8 million.
Mapletree Logistics says the improvement was driven largely by a reduction in borrowing costs, notwithstanding its larger portfolio size.
It had acquired a property each in Japan and Vietnam in the second quarter this year.
Mapletree Logistics also converted three single-user assets into multi-tenanted buildings in the second quarter for better organic growth opportunities.
It says the re-positioning will enable it to enjoy better rental revenues.
But to facilitate the repositioning, the vacancy rate increased slightly with occupancy level dropping to 97 per cent from 98 per cent in the previous quarter
As a result of this slight increase in vacancy rate, revenue as compared to the previous quarter remained relatively flat.
Going forward, Mapletree Logistics says with its diversified portfolio, it is poised to ride the Asian recovery waves.
It is mindful, however, that Asia remains susceptible to an uneven recovery in the global economy and will continue to focus on protecting its balance sheet.
Source : Channel NewsAsia – 26 Jul 2010