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MAPLETREE Logistics Trust (MapletreeLog) hopes to maintain its gearing level and is likely to support future asset acquisitions through equity fund-raising. The trust said this yesterday as it posted net property income of $45.7 million for the second quarter ended June 30. This was 19.2 per cent higher than a year back, as its portfolio grew.
The amount distributable was $28.7 million - a year- on-year increase of 26.7 per cent. Despite this, available distribution per unit (DPU) fell 27.5 per cent to 1.48 cents because of a larger unit base due to a rights issue last year. Unit-holders will receive a distribution of 1.48 cents on Aug 28. MapletreeLog's gearing ratio was around 38 per cent at June 30, down significantly from over 50 per cent before the rights issue.
'We are comfortable with MapletreeLog's current gearing level and do not have plans for any equity fund-raising for recapitalisation,' said Chua Tiow Chye, CEO of trust manager Mapletree Logistics Trust Management. 'Any equity fund-raising should be to capitalise on accretive opportunistic acquisitions,' he said.
MapletreeLog is looking at some assets but no decisions have been made, he added. Whether acquisitions materialise depends on whether there are investors to take up share placements, and whether the purchases will be yield-accretive. Mr Chua said the trust remains focused on retaining tenants and optimising yield from its existing portfolio. 'While the economic environment appears to have stabilised, it remains challenging,' he said. This may 'exert pressure on occupancy and rental rates'. MapletreeLog gained two cents yesterday to close at 60 cents.
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