Mapletree Logistics Trust (M44U) Q4 23/24 earnings summary

Executive summary

• FY23/24 operating performance remained resilient amid weaker regional currencies and higher borrowing costs; acquisitions and existing assets offset divestments and weaker China performance.

• Portfolio occupancy was 96.0%; distributable income rose 3.3% to S$447.1 million, while DPU eased 0.1% to 9.003 cents on an enlarged unit base.

• Portfolio rejuvenation accelerated, with over S$1.1 billion of acquisitions announced and/or completed and over S$200 million of divestments executed.

Financial highlights

• Gross revenue increased 0.4% YoY to S$733.9 million; NPI was flat at S$634.9 million. At constant currency, revenue and NPI grew 4.1% and 3.6%, respectively.

• Net investment income declined 3.9% to S$371.0 million, reflecting higher property costs, borrowing costs and net FX loss; borrowing costs rose 8.8% to S$145.9 million.

• Profit attributable to unitholders fell to S$303.1 million from S$545.1 million; EPS was 6.11 cents versus 11.36 cents.

• Distributable income rose 3.3% to S$447.1 million, including S$41.6 million of divestment gains; DPU was 9.003 cents versus 9.011 cents.

• AUM increased 3.2% to S$13.2 billion; NAV per unit fell 4.2% to S$1.38, mainly due to currency translation losses.

Outlook and guidance

• FY24/25 performance is expected to face continued regional currency volatility, higher interest costs and uncertainty around China's recovery.

• Priorities are accretive acquisitions, asset enhancements, selective divestments, active leasing and proactive capital management to protect balance-sheet strength.

• China rental reversions are expected to remain negative over the next few quarters; stable operations across the other eight markets are expected to help offset weakness.

• 51 Benoi Road redevelopment is targeted for completion in 1H 2025; Subang Jaya redevelopment is targeted for 1H 2028.