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Friday, April 23, 2021

Mapletree Logistics Trust Review @ 23 April 2021

Basic Profile & Key Statistics

Mapletree Logistics Trust (MLT) is a logistics SREITs that invests in 163 properties across 9 countries.

Performance Highlight

Gross revenue, NPI, distribution to unitholders and DPU increased YoY by 22.6%, 19.1%, 18.9% and 5.5% respectively due higher revenue from existing properties, acquisitions and completion of the redevelopment of Ouluo Phase 2.
Rental reversion is positive at 2.4%.
For 4Q FY20/21, MLT has completed acquisitions of 5 properties in South Korea and 2 properties in India.

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 ShareholdingLow Directors of REIT Manager's Shareholding
High Manager's ShareholdingLow Income in SGD/Major Currencies
High OccupancyNon-Competitive Management Fees
Low Cost of DebtInterest 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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