MapleTree, MMP – BT

Mapletree Log, Macquarie MEAG Reit post better income

ANOTHER two real estate investment trusts have reported better performances.

For Mapletree Logistics Trust (MLT), gross revenue for Q2 2007 was $34.1 million, up 82.6 per cent year-on-year.

MLT said that this was mainly due to contributions from 30 new properties acquired during the year.

Compared to a book value of $1 billion a year ago, its portfolio of properties has since doubled to reach $2.1 billion as at 30 June.

Net property income for the quarter was $30 million, up 85.9 per cent, while distributable income attributable to unitholders was $17.7 million, up 83.6 per cent.

Distribution per unit (DPU) for the quarter of 1.59 cents was 33.6 per cent higher year-on-year and 7.4 per cent higher than the previous quarter.

Reiterating MLT’s ‘growth by acquisitions’ strategy, Chua Tiow Chye, CEO of Reit manager Mapletree Logistics Trust Management Ltd (MLTML) said: ‘For the current year-to-date, we have completed $654 million of acquisitions and have another $166 million of acquisitions that have been announced but are pending completion. This means we have achieved 82 per cent of our $1 billion target for 2007.’

Mr Chua also said the MLT’s funding structure will continue to be optimised.

As at June 30, MLT’s leverage ratio was 54 per cent compared to 39 per cent as at March 31, 2007.

At the end of Q2 2007, 55 per cent of MLT’s total borrowings of $1.182 billion were hedged, he added.

In January, MLT raised $349 million through a fund-raising exercise, offering 296.8 million new units. MLTML deputy CEO and CFO Richard Lai said it was ‘exploring various options of going to the markets for fund raising’ for future acquisitions. MLT expects to have a portfolio worth $5 billion by 2010.

About 20 per cent of its future pipeline will come from sponsor Mapletree Investments which is developing projects in Vietnam, China and Malaysia.

MLT’s share price closed at $1.33 per unit, down 3 cents from the previous day.

Separately, Macquarie MEAG Prime Real Estate Investment Trust (MMP Reit) reported yesterday that gross revenue for Q2 2007 increased 5.5 per cent year-on-year to $23.6 million, due mainly to higher-than-expected rents achieved for retail space in the basement of Wisma Atria, as well as for office space.

Contributions from six newly acquired properties in Tokyo were also booked for the first time.

Net property income was up 3.5 per cent at $17.9 million while distributable income was $14.3 million, up 4.7.

The DPU of 1.50 cents for the quarter was 4.2 per cent higher compared to the 1.44 cents achieved for the previous corresponding period.

MMP Reit share price ended the trading day at $1.25 unchanged.