Mapletree Logistics Trust (M44U) Q2 24/25 earnings summary

Executive summary

• Gross revenue for 2Q FY24/25 was S$183.3 million, down 1.8% year-over-year, mainly due to lower contributions from China, divestments, and currency weakness, partially offset by gains in Singapore and Australia.

• Net property income declined 2.1% year-over-year to S$158.6 million; distributable income to unitholders fell 9.1% to S$102.3 million, with DPU at 2.027 cents, down 10.6%.

• Portfolio occupancy improved to 96.0%, with positive rental reversions in most markets except China, which saw negative reversions.

• Portfolio rejuvenation continued with over S$220 million in acquisitions and S$130 million in divestments year-to-date, including asset enhancements.

• Total assets under management stood at S$13.4 billion across 186 properties in nine markets as of 30 September 2024.

Financial highlights

• 1H FY24/25 gross revenue was S$365.0 million, down 1.1% year-over-year; NPI was S$315.3 million, down 1.5%.

• DPU for 2Q FY24/25 was 2.027 cents, down 10.6% year-over-year; 1H FY24/25 DPU was 4.095 cents, down 9.8%.

• Borrowing costs rose 8.8% year-over-year to S$78.3 million due to higher interest rates and incremental borrowings.

• NAV per unit as of 30 September 2024 was S$1.33, down from S$1.38 at 31 March 2024.

• Aggregate leverage ratio increased to 40.2% from 38.9% at the previous year-end.

Outlook and guidance

• Ongoing macroeconomic and geopolitical uncertainty, with China expected to continue facing negative rental reversions.

• Higher borrowing costs and currency headwinds anticipated to persist, impacting distributions.

• Focus remains on portfolio resilience through accretive acquisitions, asset enhancements, disciplined hedging, and selective divestments.

• Singapore rental reversions expected to moderate to high single digits by year-end.