Mapletree Logistics Trust (M44U) Q1 24/25 earnings summary

Executive summary

• Gross revenue for 1Q FY24/25 was S$181.7 million, down 0.3% year-over-year, with net property income at S$156.7 million, down 0.9% year-over-year, mainly due to weaker China performance, divestments, and currency depreciation.

• Distribution per unit (DPU) was 2.068 cents, an 8.9% decrease year-over-year, impacted by higher borrowing costs, currency depreciation, and China weakness.

• Portfolio comprised 188 properties across nine Asia-Pacific markets, with assets under management totaling S$13.4 billion as of 30 June 2024.

• Portfolio occupancy stood at 95.7%, with positive rental reversions of 2.6% overall, but negative in China.

• Three Grade A assets were acquired in Malaysia and Vietnam, while over S$44 million of non-core assets were divested in Malaysia, Singapore, and China.

Financial highlights

• Borrowing costs rose 9.4% year-over-year to S$38.5 million due to higher interest rates and new borrowings for acquisitions.

• Amount distributable to unitholders fell 7.4% year-over-year to S$103.7 million.

• Net income for the quarter was S$82.3 million, a decrease of 11.9% year-over-year.

• NAV/NTA per unit at S$1.37 as of 30 June 2024.

• Aggregate leverage ratio at 39.6%, up from 38.9% last quarter.

Outlook and guidance

• Global economic uncertainty and cautious tenant sentiment, especially in China, are expected to persist, with negative rental reversions in China.

• Higher borrowing costs and regional currency depreciation against SGD will weigh on financial performance.

• 78% of income for the next 12 months and 83% of total debt hedged to mitigate currency and interest rate risks.

• Focus remains on portfolio rejuvenation, resilience, and green initiatives, with recent acquisitions and divestments.