- Mapletree Logistics Trust (SGX:M44U)’s 1QFY24 results came in slightly above our expectations. Gross revenue and net property income (NPI) fell 2.9% and 3.1% y-o-y to S$182.2m and S$158.1m, respectively. This was attributed to the depreciation of CNY, JPY, KRW and AUD against the S$, but partially offset by contribution from acquisitions and organic growth in Singapore.
- - Read this at SGinvestors.io -
- Management continues to expect the biggest headwinds from currency fluctuations even though ~79% of its estimated distributable income over the next 12 months has been hedged or derived in S$.
Operating metrics mostly healthy, but more cautious outlook on China
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- Although occupancy for its China portfolio was maintained at 93.4%, this came at the expense of pushing for rental growth as tenant retention was the priority. As such, rental reversions were the lowest in China, at 0.1%, as compared to 4.2% for the overall portfolio. The largest increases came from Singapore (+8.5%), Japan (+5.9%) and Vietnam (4.1%).
- Management expects negative rental reversions from China at least over the next two quarters, and this could come in at up to -10% for the second-tier cities where there are supply pressures. Occupancy in China is expected to hover around 90-95%.
Aggregate leverage ratio increased to 39.5% due to completion of acquisitions
- Read more at SGinvestors.io.
