MAPLETREE Logistics Trust (MLT) on Thursday (Jul 21) reported a distribution per unit (DPU) of S$0.02268 for the first quarter ended Jun 30, up 5 per cent from DPU of S$0.02161 in the year-ago period.

 

Amount distributable to unitholders rose 17.2 per cent to S$108.6 million in Q1.

 

Gross revenue was up 14.6 per cent to S$187.7 million net property income (NPI) nudged up 13.2 per cent to S$163.2 million.

 

The improved performance came mainly from higher revenue from existing properties and contributions from the acquisitions in China, South Korea, Japan, Vietnam, Malaysia and Australia, which were completed last year and in the first quarter of this year, said the manager.

 

The Q1 distribution will be payable on Sep 9, following the record date on Jul 29.

 

As at end-June, MLT&rsquo s portfolio comprised 185 properties with a total value of S$13 billion.

 

As at end-June, MLT&rsquo s gearing ratio was 37.2 per cent, and it had a well-staggered debt-maturity profile, with an average debt duration of 3.7 years.

 

In its outlook statement, the manager said the global economic environment remained highly uncertain because of Russia&rsquo s ongoing invasion of Ukraine, high inflation and rising interest rates.

 

Nevertheless, overall leasing demand for warehouse space has &ldquo stayed resilient&rdquo , supported by domestic consumption, e-commerce and inventory stockpiling, though customers are &ldquo generally cautious&rdquo about capacity expansion.

 

The manager&rsquo s focus in the months ahead is on driving revenue growth from the existing portfolio through proactive leasing efforts. It will also continue pursuing opportunities for DPU-accretive acquisitions, asset enhancements or divestment to enhance portfolio competitiveness and create value.

Royston Yang

Tue, 31 May 2022, 6:00 pm

UNITHOLDERS of Mapletree Logistics Trust (MLT) have voted in favour of its plan to acquire 13 logistics assets in China and 3 properties in Vietnam as well as the proposed issue of 106 million new units in MLT as partial consideration for the acquisitions in China.

 

MLT' s manager released the minutes of an extraordinary general meeting (EGM) held on Jan 13 in a bourse filing on Friday (Feb 11), which indicated that 99.7 per cent of unitholders voted in favour of the proposed acquisitions, while 0.3 per cent voted against it.

 

A total of 99.7 per cent of unitholders also voted in favour of the proposed issue of 106 million new units to Mulberry, a subsidiary of MLT' s sponsor Mapletree Investments (MIPL), for the acquisitions in China. The consideration units would be issued at S$1.88.

 

Of the unitholders, 92.9 per cent voted in favour of a whitewash resolution for unitholders to waive their rights to receive a mandatory offer from MLT' s sponsor MIPL and its concert parties for all remaining issued MLT units not owned by MIPL and its concert parties, in the event that they trigger a mandatory bid obligation while 7.1 per cent of unitholders voted against this third resolution.

 

At the EGM, unitholder Teo Junjie questioned why the manager had chosen to acquire 7 of the properties in China which were undergoing stabilisation and required income support. Ng Kiat, chief executive of the manager, replied that the manager was confident of its ability to bring up the occupancy quickly based on MLT' s track record in China over the last 5 years, as well as its network with tenants.

 

Another unitholder, Lum Yue Wah, asked whether the issue price of S$1.88 was academic. Chairman of the manager' s board Lee Chong Kwee replied that the advantage of using consideration units was in reducing the cash outlay payable by MLT for the acquisitions in China, and also aligns the sponsor' s interests with that of unitholders' . Lee also clarified that the consideration units were to be issued to Mulberry, which was nominated by the relevant Chinese vendors.