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THANKS to additional contributions from nine properties acquired during the past year, Mapletree Logistics Trust (MapletreeLog) ended the first quarter with a 36.1 per cent year-on-year rise in distributable income to $28.6 million.
But because of an enlarged unit base after a rights issue in August last year, distribution per unit (DPU) dropped 22.6 per cent to 1.47 cents for the three months ended March 31, 2009 - from 1.9 cents for the previous corresponding period.
The DPU of 1.47 cents is slightly higher than the preceding Q4's 1.46 cents.
'We remain fully committed to paying out steady distributions,' said Chua Tiow Chye, CEO of the trust manager, Mapletree Logistics Trust Management. DBS Vickers analyst Derek Tan expects MapletreeLog's DPU to remain 'relatively stable'.
Net property income rose 23.6 per cent year-on-year to $46.2 million for Q1 2009.
MapletreeLog said that it is focusing on tenant retention this year, amid pressure on industrial and warehousing rentals and occupancy.
The weighted average occupancy rate across the trust's 81 properties dropped slightly from 99.6 per cent as at Dec 31 last year to 98.5 per cent as at March 31 this year.
With tenant retention a priority, 'the average rental reversion rate for all leases renewed to-date is almost flat', MapletreeLog added. The trust has renewed 35 per cent of the leases up for renewal this year.
On the financing front, MapletreeLog has around $151 million due this year but it has secured sufficient resources - including a $46 million term loan - to meet these obligations. Its leverage ratio fell marginally to 38.3 per cent as at March 31.
The trust is currently documenting more debt facilities which should be completed in Q2 2009, consisting of a $50 million committed revolving credit facility and a US$20 million three-year term loan.
'Challenges resulting from the current weak global economic environment will continue' for the rest of the year, Mr Chua said. While he also expects some tenants to face financial and operational stress in the next few months, the trust should be able to 'distribute steady cash distributions'.
MapletreeLog units gained one cent yesterday to close at 45 cents.
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