With extra contributions of nine properties acquired for the past years, the Mapletree Logistics Trust (MapletreeLog) ended up with 36.1 percent distributable income to $28.6 million from the first quarter this year.
However, due to the enlarged unit base, the distribution per unit (DPU) dropped to 1.47 cents for the first three months that ends 31 March 2009, a 22.6 percent decrease from 1.9 cents from the same period last year.
A 1.47 cents DPU is slightly higher than the 1.46 cents preceding forth quarter.
“We remain fully committed to paying out steady distributions”, says CEO of the trust manager for Mapletree Logistics Trust Management Chua Tiow Chye. Analyst Derek Tan of DBS Vickers expects that MapletreeLog’s DPU remain “relatively stable”.
MapletreeLog’s net property income increased to 23.6 percent to $46.2 million for the first quarter of 2009. It says that company ensures on how to keep their tenants for this year, amid the crisis that warehousing and industrial rentals are facing.
With keeping tenant as the priority, "The average rental reversion rate for all leases renewed to-date is almost flat", MapletreeLog added. They have renewed 35 percent of the total leases, which is for renewal this year.
In terms of financing, MapletreeLog has approximately $151 million due. To meet this obligation, they have secured adequate resources, including the $46 million term loan. The company’s leverage ratio decreases to 38.3 percent as of 31 March.
Company’s trust fund is currently recording more debt facility, which consists of a US$20 million three-year term loan and $50 million committed revolving credit facility.
"Challenges resulting from the current weak global economic environment will continue for the rest of the year", Mr. Chua said. Though, he expects that some tenants may face operational and financial difficulty for the next several months, the trust funds are able to "distribute steady cash distributions".