MAPLETREE LOGISTICS TRUST Highlights:
Amount distributable to Unitholders of S$46.5 million
Stable portfolio occupancy rate of 96.9% and weighted average lease expiry of 4.7 years
(S$ '000) | 3Q FY15/16 1 | 3Q FY14/15 1 | Y-o-Y % change | 9 mths ended 31 Dec 2015 2 | 9 mths ended 31 Dec 2014 2 | Y-o-Y % change |
Gross Revenue | 88,934 | 82,919 | 7.3 | 261,460 | 245,430 | 6.5 |
Property Expenses | (14,789) | (13,442) | 10.0 | (43,227) | (38,325) | 12.8 |
Net Property Income ("NPI") | 74,145 | 69,477 | 6.7 | 218,233 | 207,105 | 5.4 |
Amount Distributable To Unitholders | 46,481 3 | 46,185 4 | 0.6 | 138,480 3 | 139,048 4 | (0.4) |
Available DPU (cents) | 1.87 | 1.87 | - | 5.58 | 5.65 | (1.2) |
Excluding Divestment Gains | 44,976 | 45,565 | (1.3) | 136,975 | 137,188 | (0.2) |
Adjusted Amount Distributable to Unitholders | ||||||
Adjusted DPU (cents) | 1.81 | 1.85 | (2.2) | 5.52 | 5.58 | (1.1) |
1. 3Q FY15/16 started with 119 properties and ended with 118 properties. 3Q FY14/15 started with 113 properties and ended with 117 properties.
2. 9 months ended 31 Dec 2015 started with 117 properties and ended with 118 properties. 9 months ended 31 Dec 2014 started with 111 properties and ended with 117 properties.
3. This includes partial distribution of the gain from the divestments of 134 Joo Seng Road of S$505,000 per quarter (for 4 quarters from 3Q FY15/16) and 20 Tampines Street 92 of S$1 million per quarter (for 8 quarters from 3Q FY15/16).
4. This includes partial distribution of the gain from the divestment of 30 Woodlands Loop of S$620,000 per quarter (for 8 quarters from 1Q FY13/14).
3Q FY15/16 gross revenue grew 7% year-on-year to S$88.9 million, while net property income ("NPI") also rose 7% to S$74.1 million. The year-on-year growth in revenue and NPI was mainly
Mapletree Logistics Trust Management Ltd.10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438
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due to an enlarged portfolio and stronger performance in Hong Kong. Overall growth was however impacted by lower revenue from several Singapore properties that were recently converted to multi-tenanted buildings and revenue loss from 76 Pioneer Road which commenced redevelopment in August 2015.
The amount distributable to Unitholders for 3Q FY15/16 was S$46.5 million, up 1% from the same period last year, while distribution per unit ("DPU") remained unchanged at 1.87 cents. The quarter's results include a partial distribution of the gain from the divestments of 134 Joo Seng Road and 20 Tampines Street 92 amounting to S$1.5 million. Excluding divestment gain, the amount distributable to Unitholders would be S$45.0 million and DPU would be 1.81 cents.
Ms Ng Kiat, Chief Executive Officer of MLTM, said, "Through active lease and asset management, we have renewed or replaced most of the leases expiring this year, thereby maintaining a high portfolio occupancy of 96.9%. The recent divestments of two properties in Singapore have realised a total net divestment gain of S$10 million which we will be distributing to Unitholders over four to eight quarters, starting from 3Q FY15/16. We will continue with our active asset management strategy to maintain stable occupancy and to achieve organic growth from our portfolio."
As at 31 December 2015, MLT's portfolio comprised 118 properties with a book value of S$5.0 billion and a gross floor area of approximately 3.3 million square metres ("sqm"). Of the 118 properties, 51 are in Singapore, 22 in Japan, 8 in Hong Kong, 14 in Malaysia, 9 in China, 11 in South Korea, 1 in Australia and 2 in Vietnam.
Portfolio occupancy has remained stable at 96.9%, unchanged from the previous quarter. Progressive leasing up of vacant space at properties that were converted to multi-tenanted buildings last year has mitigated lower occupancy at properties that were recently converted to multi-tenanted buildings.
MLT has a well-staggered lease expiry profile. The portfolio's weighted average lease expiry (by net lettable area) is about 4.7 years with 46% of total leases not due for renewal till FY19/20 and
beyond. Leases for approximately 236,000 sqm of space were due for expiry in 3Q FY15/16, of which 97% had been successfully renewed or replaced. A positive average rental reversion rate of approximately 5% was achieved, contributed mainly by leases in Hong Kong, Singapore and China.
During the quarter, the Manager procured two loan facilities totalling S$150 million with tenors of
4.5 and 6 years for refinancing purpose. Post-quarter, the Manager extended the maturity of a JPY7.015 billion (~S$82 million) term loan facility due in FY16/17 for another 8 years. This resulted in an increase in MLT's average debt duration from 3.3 years as at 31 December 2015 to 3.7 years.
MLT's aggregate leverage increased slightly from 38.8% in the previous quarter to 39.0% as at 31 December 2015. This was mainly due to additional loans drawn for capital expenditure in Singapore and Japan. Average borrowing rate for 3Q FY15/16 was 2.4% per annum with about 80% of MLT's total debt hedged into fixed rates. To mitigate the impact of foreign exchange fluctuations on distribution, about 90% of MLT's income stream for this financial year has been hedged into or is derived in Singapore dollars.
The global macroeconomic outlook remains subdued and uncertain. While the U.S. economy has reported signs of nascent growth, this is outweighed by concerns of a deepening slowdown in the Chinese economy. The growing macroeconomic uncertainties have contributed to a challenging leasing environment in MLT's markets, with delayed decision making over the renewal of leases and take-up of new space.
The Manager has to date renewed or replaced 93% of the 692,000 sqm of leases due for expiry in FY15/16. Tenant retention and the management of the conversion of single-user assets to multi- tenanted buildings are key priorities of the Manager.
The Manager will continue to pursue opportunities to deliver long term, sustainable returns to Unitholders. This strategy will be supported by a disciplined capital management approach. The
Manager has maintained a well-staggered debt maturity profile with 80% of MLT's debt hedged or drawn in fixed rates to mitigate the risk of rising interest rates.
MLT will pay a distribution of 1.87 cents per unit on 29 February 2016 for the period from 1 October 2015 to 31 December 2015. The books closure date is on 2 February 2016.
MLT, the first Asia-focused logistics REIT in Singapore, was listed on the SGX-ST main board on 28 July 2005. MLT's principal strategy is to invest in a diversified portfolio of income-producing logistics real estate and real estate-related assets. As at 31 December 2015, it has a portfolio of 118 logistics assets in Singapore, Hong Kong, Japan, China, Malaysia, South Korea, Australia and Vietnam with a total book value of S$5.0 billion. MLT is managed by Mapletree Logistics Trust Management Ltd., a wholly-owned subsidiary of Mapletree Investments Pte Ltd. For more information, please visit www.mapletreelogisticstrust.com.
For enquiries, please contact: Ms Lum Yuen May
Vice President, Investor Relations Tel: +65 6659-3671
Email: lum.yuenmay@mapletree.com.sg
This Announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MLT ("Units"). The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of MLT may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of MLT is not necessarily indicative of its future performance. This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representatives examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. The information in this Announcement must not be published outside the Republic of Singapore and in particular, but without limitation, must not be published in any United States edition of any publication.
Mapletree Logistics Trust issued this content on 25 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 January 2016 10:53:04 UTC
Original Document: http://www.mapletreelogisticstrust.com/~/media/MLT/Newsroom/Press Releases/2016/Jan/MLT_3Q15 Press Release_final.ashx
