Mapletree Logistics Trust (M44U) Q2 23/24 earnings summary

Executive summary

• 2Q gross revenue rose 1.5% YoY to S$186.7m and NPI rose 1.2% to S$162.0m; distributable amount increased 4.2% to S$112.5m.

• 2Q DPU rose 0.9% to 2.268 cents; H1 DPU increased 0.5% to 4.539 cents.

• H1 revenue fell 0.7% and NPI 1.0%, while distributable amount rose 3.6% to S$224.5m.

• More than S$900m of acquisitions and over S$150m of divestments were announced or completed YTD.

Financial highlights

• 2Q profit for the period rose 2.2% to S$101.1m and unitholder-attributable profit rose 0.9% to S$94.2m; basic EPU fell to 1.90 cents from 1.95 cents.

• H1 profit fell 2.2% to S$194.5m and unitholder-attributable profit declined 3.4% to S$181.3m; basic EPU was 3.67 cents versus 3.92 cents.

• Borrowing costs rose 10.2% YoY to S$36.8m in 2Q and 11.7% to S$72.0m in H1, reflecting acquisition-related debt and higher average interest rates.

• 2Q net FX loss was S$14.3m, mainly from USD-denominated borrowings; a S$14.7m fair-value gain related to assets held for sale.

Outlook and guidance

• Rental rates across most markets were expected to remain stable; China rent reversion was expected to stay negative near term.

• Portfolio priorities include selective divestments, asset enhancements and accretive acquisitions; over S$370m of asset enhancement initiatives were ongoing.

• A 2.268-cent distribution for 1 July–30 September 2023 is payable on 19 December 2023; record date is 1 November 2023.