High interest costs, weak regional currencies and continued weakness in China operations was offset by otherwise stable operations and divestment gains.
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Headwinds from China, FX and rates
Mapletree Logistics Trust's 4QFY24 gross revenue and NPI was up 1.2% and 0.6% y-o-y. q-o-q, but down 1.7% and 2.6%, respectively. Growth on the year was driven by acquisitions and improved performance partly offset by China, divestments and weaker FX. On a constant currency basis, revenue and NPI would have grown 3.6% and 3%, respectively.
Q-o-q weakness was driven by lack of income from divested properties, weaker performance in China and Singapore and currency weakness.
Negative impact from higher borrowing cost and enlarged number of units was offset by distribution of divestment gains, resulting in modest decline of 2.5% y-o-y for 4QFY24 DPU. Full-year trends were similar and divestment gains cushioned the DPU decline significantly.
Mapletree Logistics Trust's portfolio occupancy was maintained at 96%, though occupancy in China remained at 93%. Portfolio rent reversion was +2.9%. China registered reversion of -10% and is likely to remain negative for this fiscal as well. However, overall portfolio reversion will continue to be positive.
Focus on capital recycling
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
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