Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 31.27%
- REIT manager's shareholding is high at 1.07%
- Directors of REIT manager's shareholding is low at 0.02%
Lease Profile
- Occupancy is high at 97.5%
- Income in SGD/Major Currencies is low at 51.1%.
- WALE is slightly short at 3.6 years
- Highest lease expiry within 5 years is moderate at 26.4% which falls in FY21/22
- Weighted average land lease expiry is slightly short at 50.66 years (to be updated after release of annual report)
Debt Profile
- Gearing ratio is moderate at 38.4%
- Cost of debt is low at 2.2%
- Fixed rate debt % is moderate at 75%
- Unsecured debt % is high at 91.3%
- WADM is long at 3.8 years
- Highest debt maturity within 5 years is low at 22% which falls in FY23/24
- Interest coverage ratio is high at 5.1 times
- Preferred/Perpetual Securities over Debts is moderate at 9.2%
Diversification Profile
- Top geographical contribution is low at 32.4%
- Top property contribution is low at 10.4% (to be updated after release of annual report)
- Top 5 properties contribution is low at 24.4% (to be updated after release of annual report)
- Top tenant contribution is low at 7.9%
- Top 10 tenants contribution is low at 26.5%
- Top 3 countries contribution is from Singapore, Hong Kong and China which contribute around 2/3 of GRI
Key Financial Metrics
- Property yield is moderate at 5.3%
- Management fees over distribution is high at 18.9% in which unitholders receive S$ 5.29 for every dollar paid
- Distribution on capital is high at 3.6%
- Distribution margin is high at 56.3%
- 5.7% of the past 12 months DPU is from distribution from asset disposal
Trends
- Uptrend - DPU, NAV per Unit, Distribution Margin
- Flat - Distribution on Capital
- Downtrend - Interest Coverage Ratio, Property Yield
Relative Valuation
- Dividend Yield - Past 4 quarters DPU @ 8.326 cents / average yield @ 5.75% = S$ 1.45
- Price/NAV - NAV @ S$ 1.33 x average P/NAV @ 1.25 = S$ 1.66
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| High Manager's Shareholding | Low Income in SGD/Major Currencies |
| High Occupancy | Non-Competitive Management Fees |
| Low Cost of Debt | Interest Coverage Ratio Downtrend |
| High Unsecured Debt % | Property Yield Downtrend |
| Long WADM | |
| Well Spread Debt Maturity | |
| High Interest Coverage Ratio | |
| Low Top Geographical Contribution | |
| Low Top Property & Top 5 Properties Contributions | |
| Low Top Tenant & Top 10 Tenants Contributions | |
| High Distribution on Capital | |
| High Distribution Margin | |
| DPU Uptrend | |
| NAV per Unit Uptrend | |
| Distribution Margin Uptrend |
MLT continues to deliver a good result with increasing DPU to unitholders. Moreover, the newly acquired properties in South Korea and India would contribute full-quarter income moving forward, which should improve DPU further.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
REIT Investing Community - Facebook Group where members share and discuss REIT topic
*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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