Mapletree Logistics Trust's 2Q FY24/25 Result Review

$Mapletree Log Tr(M44U.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

MLT's gross revenue and NPI experienced a slight decline YoY, primarily due to lower contributions from its China properties, divested assets, and the weakening of foreign currencies against the SGD. The amount distributable to unitholders and DPU saw a more significant drop, impacted by higher borrowing costs, reduced distributions from divestment gains, and increased tax expenses.

Rental Reversion

In 2Q FY24/25, portfolio rental reversion stood at -0.6%, with only the China properties experiencing negative reversion.

Divestment

In September, MLT divested two properties, with four more pending completion.

Redevelopment

The redevelopment of 51 Benoi Road is progressing, with completion expected in 1H 2025. Meanwhile, the amalgamation of Subang 3 and 4 is awaiting approval from relevant authorities.

Related Parties Shareholding

The manager and directors of the REIT manager hold a relatively low proportion of shares.

Lease Profile

MLT's WALE is relatively short, with a lease expiry concentration in FY25/26. Additionally, a low proportion of income is in SGD or other major currencies, and the weighted average land lease expiry is relatively short.

Debt Profile

MLT maintains a low cost of debt, with a high proportion of fixed-rate borrowings. Debt maturities are well-distributed with a relatively long WADM.

Diversification Profile

MLT's diversification profile is excellent.

Key Financial Metrics

While the operating distributable income margin remains favorable, management fees are relatively high in proportion to operating income, and the operating distribution proportion is on the lower side.

DPU Breakdown

• TTM Distribution Breakdown:78.5% from Operation13% from Management Fees Paid in Units8.4% from Divestment Proceeds

Trends (Up to 10 Years)

• Uptrend: NAV per Unit

• Flat: DPU from Operation, Committed Occupancy

• Slight Downtrend: Operating Distributable Income Margin

• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 10y; Above +1SD for 3y & 5y 

• P/NAV: Average for 1y & 10y; Below -1SD for 3y & 5y 

Author's Opinion

Compared to the previous quarter, MLT's gross revenue and NPI have remained stable with a slight decline in DPU. On the debt side, only 2% of borrowings are due to mature this fiscal year.

For more information, check out REIT-TIREMENT

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.