MapletreeLog eyeing more properties in S’pore, region

It plans to be more careful in funding purchases; Q4 DPU climbed 8.9%

MAPLETREE Logistics Trust (MapletreeLog) is focusing more on growth this year and is looking at acquisitions in Singapore and the region. But it also intends to be more careful in funding purchases and this could affect the timing of cash calls.

The trust said this yesterday as it posted a net property income of $44.9 million for the fourth quarter ended Dec 31, 2009, which was 0.4 per cent less than that a year ago.

Nevertheless, the amount distributable rose 12.3 per cent to $31.8 million. This was boosted by a $2.5 million consideration from Prima Limited for a lease extension at a Singapore property.

As a result, available distribution per unit (DPU) rose 8.9 per cent to 1.59 cents. This came despite a larger unit base from a $79 million private placement in November last year.

‘We think 2010 is a transition year,’ said Richard Lai, deputy CEO and chief financial officer of the Reit manager at a briefing. While the Reit is building up its acquisition pipeline, ‘we will continue to be quite conservative in terms of how we use our balance sheet’.

Mr Lai explained that the Reit is looking to match borrowings and cash calls more closely. ‘What we are saying is that it will be harder to predict when we have to do an equity fund-raising.’

MapletreeLog is also looking to undertake build-to-suit projects in Singapore and abroad.

MapletreeLog’s leverage ratio as at Dec 31 was 36.7 per cent, down from 38.5 per cent year-on-year. Around $204 million or 19 per cent of its total debt is due for refinancing this year and it has received firm refinancing offers from banks.

The trust’s portfolio comprised 82 properties with a book value of around $2.9 billion as at Dec 31. It was revalued downward by $16.5 million in FY2009. The portfolio occupancy rate was 98.1 per cent, down from 99.6 per cent a year ago.

For FY2009, MapletreeLog reported an amount distributable of $117.9 million, 21 per cent higher year-on-year. DPU was 6.02 cents, down 16.9 per cent.

MapletreeLog gained half a cent yesterday to close at 79 cents.

Source : Business Times – 22 Jan 2010