Mapletree Logistics Trust (MLT) has announced its financial results for the second quarter ended September 30, 2014. It reported gross revenue of S$81.51m, an increase of 5.8% year-on-year. Property expenses for the period were S$12.9m, representing a year-on-year increase of 23%. Accordingly MLT’s Q2 net property income was S$68.66m.
The revenue increase was mainly driven by contributions from Mapletree Benoi Logistics Hub and two acquisitions in Malaysia and South Korea, as well as higher revenue from existing assets. Revenue growth was partly impacted by lower occupancy at several newly converted multitenant buildings in Singapore where the single-tenant master leases had expired.
The increase in property expenses was mainly attributable to the enlarged portfolio, the beginning of operations at Mapletree Benoi Logistics Hub and higher costs associated with the conversion of single-tenanted buildings to multi-tenanted buildings.
Ng Kiat, Chief Executive Officer of MLT’s Manager said, “This has been a busy period for MLT as we forged ahead in our expansion plans to deepen presence in our target growth markets such as China, South Korea and Malaysia. For the first half of the financial year, we had made four accretive acquisitions of about S$149m. We hope to continue to strengthen our portfolio through more acquisitions and asset-enhancement initiatives.”
In Q2 portfolio occupancy declined to 97.2%, from 97.6% in the previous quarter. This was mainly attributed to lower occupancy in Singapore due to the conversion of several single-tenanted assets to multi-tenanted assets.
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