On 25th July 2023, Mapletree Logistics Trust released their 1Q FY23/24 Financial Results. Its overall portfolio occupancy remains stable, underpinned by a portfolio of well-located, modern assets.
High borrowing costs, a strong Singapore Dollar and slower than expected economic recovery in China continue to weigh on its financial performance in the near term.
Let us take a look in more details below.
Mapletree Logistics Trust 1Q FY23/24 Financial Results
In 1Q FY23/24, Gross Revenue decreased due to weaker exchange rates, in particular the depreciation of CNY, JPY, KRW and AUD against SGD.
The decrease was mitigated by better performance in Singapore and contribution from the recent acquisitions in Japan and South Korea completed in 1Q FY23/24, partly offset by weaker performance in China.
Property expenses decreased due to effect from depreciation of CNY, JPY and KRW against SGD. This was partly offset by contribution from acquisitions
completed 1Q FY23/24, higher insurance expense, and repair and maintenance expense.
Bearing the above conditions, Distribution Per Unit (DPU) for 1QFY23/24 increased by only a mere 0.1% y-o-y to 2.271 cents.
| 1Q FY23/24 (S$’000) | 1Q FY22/23 (S$’000) | Change | |
| Gross Revenue | 182,194 | 187,674 | (2.9)% |
| Net Property Income | 158,143 | 163,238 | (3.1)% |
| Property expenses | (24,051) | (24,436) | (1.6)% |
| Amount Distributable To Unitholders | 111,972 | 108,609 | 3.1% |
| Distribution Per Unit (“DPU”) (cents) | 2.271 | 2.268 | 0.1% |
Debt
As of 30th June 2023, aggregate leverage ratio increased to 39.5%. This was an increase of 2.7% as compared to 36.8% last quarter.
Total debt outstanding increased by S$683 million to S$5,561 million mainly due to additional loans drawn to fund the acquisitions in Japan, South Korea and Australia.
Weighted average interest rate decreased slightly to 2.5% per annum due to lower interest rates on JPY loans drawn to fund the acquisitions.
Debt maturity profile remains well-staggered with an average debt duration of 3.8 years.
Occupancy
As of 30th June 2023, overall portfolio occupancy remain healthy at 97.1%.
The occupancy rate improved in South Korea but was partially offset by lower occupancy rate in Singapore. Japan, Malaysia, Vietnam, Australia and India continued to maintain their near-full or 100% occupancy rates.
Weighted Average Lease Expiry (by Net Lettable Area) remained the same at 3.1 years in 1Q FY23/24 as compared to 4Q FY22/23.
Current Dividend Yield
Let us take a look at its current dividend yield. Based on the current share price of S$1.73 and FY22/23 full year distribution of 9.011 cents, this translate to a current dividend yield of 5.21%.
Summary of Mapletree Logistics Trust 1Q FY23/24 Financial Results
Let me summarize the pros and cons of Mapletree Logistics Trust 1Q FY23/24 financial results for you.
Pros
- Better performance in Singapore and contribution from the recent acquisitions in Japan and South Korea completed in 1Q FY23/24.
- Property expenses decreased.
- Distribution Per Unit (DPU) for 1QFY23/24 increased by only a mere 0.1% y-o-y to 2.271 cents.
- Overall portfolio occupancy remain healthy at 97.1%.
- Current dividend yield of 5.21%.
Cons
- Gross Revenue decreased due to weaker exchange rates.
- Aggregate leverage ratio increased to 39.5%.