MapletreeLog Distributable Income Up 37% In Q1

Source : The Business Times, April 25, 2008

MAPLETREE Logistics Trust (MapletreeLog) yesterday reported distributable income of $21 million for the first quarter ended March 31, up 37 per cent from the corresponding period last year.

This comes on the back of a 48 per cent jump in gross revenue from the year-ago period to $42.6 million.

The increase in distributable income came as MapletreeLog acquired an additional 23 properties within the past one year. As at March 31, the trust has a portfolio of 72 properties. Eight acquisitions are pending completion, which will raise the trust's portfolio to 80 properties spread across Singapore, Malaysia, Hong Kong, Japan, China and South Korea, with a book value of more than $2.7 billion.

Unitholders will receive distribution per unit (DPU) of 1.90 cents for Q1 2008, which is 28.4 per cent higher than in the year-ago period.

MapletreeLog's website shows analysts' DPU forecasts for 2008, made in January, ranged from 6.70 cents to 8.01 cents.

MapletreeLog also reported an improvement in borrowing costs. Due to a sharp drop in interest rates for major currencies during the quarter, the trust's weighted average annualised interest rate fell from 3.3 per cent per annum in the Q4 2007 to 2.9 per cent in Q1 2008.

According to Mapletree Logistics Trust Management (MLTM) CEO Chua Tiow Chye, the trust has started the year with a strong performance.

'We will continue with our yield plus growth strategy but in the current environment, we will remain focused on optimising yield from the existing portfolio while continuing to identify selective acquisition opportunities which we can undertake when the environment normalises,' Mr Chua said.

MapletreeLog had announced a $500 million rights issue in December last year but deferred the plan in January when the capital market softened.

On this, Mr Chua said: 'We will continue to monitor and review when it will be conducive to re-visit an equity fund raising.'

MapletreeLog also reported a higher leverage ratio of 54.7 per cent as at March 31, up 1.3 percentage points from Dec 31 last year. This was largely due to borrowings drawn down to fund the trust's committed acquisitions in Q1 2008.