Mapletree Logistics Trust has reported a distribution per unit of 2.271 cents for its 1QFY2024 ended June, barely different from 2.268 cents paid for the year-earlier period.

Amount distributable to unitholders was up 31.% y-o-y to $111.97 million, while gross revenue was down 2.9% y-o-y to $182.2 million, due to unfavourable forex movements.

The REIT's portfolio includes assets in China, South Korea, Japan and Australia - all of whose respective currencies weakened versus the reporting currency, Singdollar.

“We continue to see the impact of weaker currencies and higher borrowing costs," says  Ng Kiat, CEO of the REIT's manager.

"However, the improved quality and resilience of our portfolio have continued to provide stability to our results.

"Given the economic uncertainty, our focus is to maintain portfolio stability, while continuing our efforts to rejuvenate the portfolio towards high-specs, modern assets," she adds.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ihh-healthcare-doubles-earnings-rm5321-mil-3qfy2023?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>IHH Healthcare doubles earnings to RM532.1 mil for 3QFY2023</a>

During the quarter, Mapletree Logistics Trust acquired eight properties in Japan, South Korea and Australia.

The REIT now has 193 assets in its portfolio worth $13.5 billion as at June 30.

It has managed to maintain a relatively high occupancy rate of 97.1% in 1QFY2024, up slightly from 97% recorded in the preceding 4QFY2023.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/kimly-earnings-72-y-o-y-365-mil-fy2023-confectionery-business-disposal?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Kimly earnings up 7.2% y-o-y to $36.5 mil for FY2023 from confectionery business disposal</a>

For the quarter, Mapletree Logistics Trust managed to charge revised rental rates at 4.2% higher.

As at June 30, its gearing stood at 39.5%, with an average debt duration of 3.8 years.

Some 82% of its total debt has been hedged into fixed rates, while around 79% of its income stream for the next 12 months has been hedged into SGD.

The REIT's manager warns that the global economic outlook remains subdued against a backdrop of elevated interest rates, slowing growth and geopolitical uncertainty.

"Underpinned by a portfolio of well-located, modern assets, MLT’s overall portfolio occupancy is expected to remain stable, although rental growth may moderate amid the economic slowdown," adds the REIT's manager.

"High borrowing costs, a strong SGD and slower than expected economic recovery in China will continue to weigh on MLT’s financial performance in the near term," the manager adds.

MLT closed July 25 at $1.71, up 0.59% for the day and up 8.23% year to date.

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Mapletree Logistics Trust holds 1QFY2024 DPU steady at 2.271 cents

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