Mapletree Logistics Trust

Mapletree Logistics Trust reported amount distributable increased by 8% YoY to $30.9m despite gross revenue staying relatively flat at $52m (due to a repositioning exercise as the trust converted three from single-user to multi-tenanted buildings). We note that the improved results were largely driven by reduction in borrowing costs notwithstanding larger portfolio size. DPU rose 1.4% to 1.5 cents, which translate into annualised yield of about 6.8%.

Also, recent acquisitions have yet to boost results. Recall that MapletreeLog bought five properties since Dec last year but of these, three were completed only in Q2. The trust expects the full benefit from these assets to make an impact from Q3. Mgtm is also upbeat about its prospects as it continues to build its pipeline of acquisitions. The trust still has a comfortable balance sheet with gearing ratio of 38.8% as at end-June 2010.