Mapletree Logistics Trust (MLT) reported a 1.1% year-on-year (YoY) rise in distributable income to 93.0 million Singapore dollars for the quarter ended Jun 30, buoyed by contributions from a newly acquired asset in India and the completed redevelopment of a Singapore facility. Gross revenue edged up 0.8% YoY to S$178.9 million, while net property income gained 2.0% to S$156.4 million, helping the real-estate investment trust (REIT) deliver a 0.2% increase in available distribution per unit (DPU) to 1.816 Singapore cents.
Earnings per unit were not disclosed, but the REIT will pay the 1.816-cent distribution on 16 Sep, with a record date of 5 Aug. Borrowing costs fell 2.7% YoY, reflecting refinancing efforts and debt repayment using divestment proceeds.
The 175-property portfolio posted an overall occupancy rate of 96.4% and achieved an average rental reversion of 2.3% outside China (0.9% including China), supported by firmer demand in Hong Kong SAR and full-period income from the Indian asset. Weighted average lease expiry stood at about 2.5 years.
Performance was partially offset by lower occupancies in Singapore, China and Australia, currency headwinds and the absence of income from assets divested in the prior year. Quarter-on-quarter, borrowing costs rose, trimming the uplift from stronger operating income and resulting in a marginal 0.2% dip in DPU despite higher revenue.
MLT is advancing its portfolio-rejuvenation programme. After the quarter closed, it agreed to sell two Wuxi logistics parks in China and a Singapore warehouse at 39 Changi South Avenue 2 for a combined S$155 million. Proceeds will be redeployed into higher-yielding opportunities and debt reduction. As at Jun 30, total debt stood at S$5.52 billion, translating to a gearing ratio of 40.5%. About 82% of borrowings are on fixed rates, and the trust has S$653 million of committed undrawn facilities, keeping its weighted average borrowing cost steady at 2.6% and extending average debt maturity to 3.5 years.
Chief executive officer Jean Kam said the REIT started the fiscal year on a stable footing, citing disciplined capital management and resilient leasing demand despite inflationary pressures and currency volatility. She noted that the planned China and Singapore divestments will enhance financial flexibility and underpin long-term value creation. Kam added that the manager will continue to prioritise occupancy, rental stability and cost efficiencies while maintaining a cautious stance on acquisitions amid expectations of moderating global growth and a prolonged high-interest-rate environment.