Mapletree Logistics Trust (MAPGF) Q4 2025 Earnings Call Transcript

2025-04-24 15:47:08 ET

Mapletree Logistics Trust (MAPGF)

Q4 2025 Results Conference Call

April 23, 2025 10:00 PM ET

Company Participants

Yuen May - IR Manager

Charmaine Lum - CFO

James Sung - Head, Asset Management & Marketing

Chow Mun Leong - Head, Investment

Jean Kam - ED and CEO

Conference Call Participants

Mervin Song - JPMorgan

Derek Tan - DBS

Rachel Chow - Macquarie Group

Derek Chang - Morgan Stanley

Dale Lai - DBS

Joy Wang - HSBC Global Research

Terence Lee - UBS

Vijay Natarajan - RHB Invest

Brandon Lee - Citigroup

Jonathan Koh - UOB Kayhian

Krishna Guha - Maybank

Presentation

Yuen May Lum

Good morning. Welcome to MLT's results briefing for the fourth quarter and full year for the financial year ended March '25. We had a full management strength here. To start off the meeting will be our CFO, Charmaine. Over to you, please.

Charmaine Lum

Hi, morning, good morning, everyone. Thank you for dialing in today. So the 4Q FY '24, '25 results, our results continue to be impacted by the lower contribution from China, higher borrowing costs as well as some FX impact. Overall DPU is at SGD 0.01955, 11.6% lower against 4Q last year, mainly due to the same reasons I've highlighted earlier. Operationally, our portfolio occupancy is stable while rental reversion is slightly better compared to 3Q results.

WALE is slightly longer 2.8 years. Capital management wise, our aggregate leverage has creeped up to 40.7% against 40.3% last quarter, mainly due to the valuation loss as well as some FX translation due to the weakening regional currencies against the Sing dollar. We continue to hedge our debt about 81% is in fixed rates, with a debt maturity of 3.8 years and 75% of our income have been hedged into Sing dollars for the next 12 months.

During the quarter, we completed 3 Malaysian divestments. The proceeds have been used to pardon loans. We also announced divestment of another 3 projects, 2 in Singapore and 1 in Malaysia that will be completed in the new financial year. If I move on to the results itself. Gross revenue is 0.8% lower, mainly due to lower contribution from China, absence of revenue contribution from divested properties as well as currency weaknesses.

This is mitigated by better performance in the rest of our markets. NPI is lower by 1.6% accordingly. In terms of borrowing costs, we had higher average. Out of the 4% increase, about SGD 2.4 million is actually due to incremental borrowings to fund the acquisitions we completed at the beginning of the financial year. The higher average interest -- while we saw higher average interest costs when -- with the replacement of our hedges that fell off, these were offset by loan repayments and proceeds from divestments.

After taking into account DG of SGD 7.7 million, SGD 4.3 million lower than the SGD 12 million we declared last year. DI is 10.3% lower, translating to a DPU, that's 11.6% or at SGD 0.01955. Excluding divestment gains pop-up, we are -- the adjusted DPU would have been 8.5% lower or SGD 0.01803 versus the SGD 0.0971 last year.

Moving on to full year results. The reasons behind the variances are very similar to the 4Q year-on-year. Gross revenue is SGD 6.9 million or 0.9% lower compared to last year, full year, mainly due to lower contribution from China, absence of revenue contribution from divested properties. [Technical Difficulty]...

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