Mapletree Logistics Trust Review @ 18 May 2023
$MAPLETREE LOGISTICS TRUST(M44U.SI)$
Basic Profile & Key Statistics
Main Sector(s): Logistics
Country(s) with Assets: Singapore, China, Hong Kong, Japan, Australia, South Korea, Malaysia, Vietnam & India
No. of Properties (exclude development/associate/fund): 191
Key Indicators
Performance Highlight
Gross revenue and NPI declined slightly YoY mainly due to the depreciation of RMB, JPY, KRW and AUD against SGD. However, distribution to unitholders improved slightly mainly due to a combination of hedging at the distribution level, higher management fees received in units and lower tax expenses.
Rental Reversion
Rent reversion for the latest quarter is at +3.1%.
Acquisition
MLT announced the proposed acquisition of 8 properties in Japan, Australia and South Korea, together there is also a potential acquisition of 2 properties in China and a potential divestment of a property in Hong Kong. As of today, the acquisition of 6 properties in Japan is completed.
Divestment
MLT divested 3 Changi South Lan on 31 Mar 2023. The divestment of Chee Wah and Subang 1 is expected to be completed in 1Q FY23/24.
Development
The redevelopment of 51 Benoi Road is targeted to be completed by 1Q 2025.
Related Parties Shareholding
REIT Sponsor's Shareholding: Above median by 20% or more
REIT Manager's Shareholding: Below median by 20% or more
Directors of REIT Manager's Shareholding: Below median by 20% or more
Lease Profile
Occupancy: ± 5% from median
Income in SGD/Major Currencies: Below median by 20% or more
WALE: Below median by 20% or more
Highest Lease Expiry within 5 Years: Above median by 20% or more; Falls in FY23/24
Weighted Average Land Lease Expiry: median by 20% or more
Debt Profile
Gearing Ratio: ± 10% from median
Gearing including Perps: ± 10% from median
Cost of Debt: Below median by 20% or more
Fixed Rate Debt %: Above median by 10% or more
Unsecured Debt %: ± 10% from median
WADM: Above median by 20% or more
Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY26/27
Interest Coverage Ratio: ± 10% from median
Diversification Profile
Top Geographical Contribution: Below median by 20% or more
Top Property Contribution: Below median by 20% or more
Top 5 Properties' Contribution: Below median by 20% or more
Top Tenant Contribution: Below median by 20% or more
Top 10 Tenants' Contribution: Below median by 20% or more
Key Financial Metrics
Property Yield: ± 10% from median
Management Fees over Operating Distributable Income: Above median by 20% or more; $4.12 distribution for every dollar paid
Operating Distributable Income on Capital: ± 10% from median
Operating Distributable Income Margin: Above median by 10% or more
Operating Distribution Proportion: Below median by 5% or more
DPU Breakdown
TTM DPU Breakdown:84.8% from Operation13.2% from Management Fees Paid in Units0.5% from Income Support1.5% from Proceeds from Divestment
Trends
Uptrend: DPU from Operation, NAV per Unit
Flat: Occupancy
Slighy Downtrend: Operating Distributable Income Margin
Downtrend: Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital
Relative Valuation
P/NAV: Average for 1y & 5y; Below -1SD for 3y
Dividend Yield: Average for 1y & 5y; Above +1SD for 3y
Author's Opinion
The latest results show that MLT's performance has remained consistent with the previous quarter. There is only 8% of debt requires refinancing in the next 12 months with a high fixed-rate debt proportion at 84%. Additionally, 77% of the distributable amount in the next 12 months is hedged or derived in SGD. With the completed acquisition of 6 properties in Japan, MLT's overall performance is expected to remain stable.
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So the company's portfolio is concentrated in Singapore and Italy?
$丰树物流信托(M44U.SI)$ is a good investment for investors looking for a reliable income stream and capital appreciation.
The company's portfolio is diversified across two countries and three asset classes, which provides some insulation against risks.
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Great article