Mapletree Logistics has announced its financial results for the third quarter ended December 31, 2014. It reported gross Q3 revenue of S$82.92m, an increase of 6% year-on-year. The company also recorded net property income of S$69.48m, an increase of 3.1% year-on-year. Accordingly Mapletree Logistics’ property income margin stood at 83.79%.
The increase was driven mainly by an enlarged portfolio, contribution from Mapletree Benoi Logistics Hub and higher revenue from existing assets, but partially offset by lower occupancy in several properties in Singapore that were recently converted to multi-tenanted buildings. Revenue growth was also impacted by the depreciation of the Japanese Yen. Excluding the impact of foreign exchange, gross revenue would have increased by 7.1% year-on-year. As the income streams from Japan are substantially hedged, the impact of the weaker Japanese Yen on distributable income was mitigated.
The growth in net property income came largely as a result of the expansion of the company’s network over the year. However it was partially offset by rising property expenses, which increased by 25.7% year-on-year.
Ng Kiat, Chief Executive Officer of Mapletree Logistics said, “We maintain absolute focus on active lease and asset management. Through intensified marketing and leasing efforts, we have renewed/ replaced approximately 94% of leases due for expiry in Q3 at an average positive rental reversion of 9%. However, Singapore operations will remain challenging, with more conversions of single-tenanted buildings to multi-tenanted buildings expected over the next 12 months.”
She went on, “On the investment front, we added four quality assets in Q3 as part of our ongoing efforts to rebalance MLT’s portfolio to higher growth markets. This brings the total number of acquisitions to six this year, with a combined value of approximately S$209m. In line with our capital recycling strategy, we also announced the planned divestment of 134 Joo Seng in Singapore. The transaction is still pending the execution of a sale and purchase agreement and regulatory approvals. Any divestment gain realised from this transaction will be distributed to Unitholders.”
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